A Return of Your Investment
August 28, 2021
Capital Credits Coming Soon
Paying your electric bill isn’t just payment for service—it’s an investment in your cooperative. As a member-owner providing a share of our capital, you’re building equity in the co-op, and capital credits are your return of that investment.
Each year, any margins (revenues in excess of expenses) generated by Union Power are proportionally allocated to you as capital credits and are held in an account in your name. Those margins are then reinvested into the cooperative for capital expansion, system improvements, and ongoing operations and maintenance activities.
Once the cooperative has met its financial requirements, and after a period of time, capital credits are returned (paid) to you.
Be on the lookout for your Capital Credit soon!
Based on the continued financial strength of the cooperative, the board of directors has approved a capital credit retirement of approximately $3.5 million to be distributed in 2021.
This year’s capital credit retirement is comprised of 100% of the unretired balance of 2002 and 2003 allocations, as well as 7% of the unretired balance of 2004 allocations. This means, if you had service with us during the years of 2002, 2003 or 2004, you will receive a payment.
For those members who are eligible for a payment, you will see this in the form of a credit on your September electric bill. Former members who have since moved off of our system will receive a check in the mail.
Capital credits are one of the tangible benefits of being a member of an electric co-op and a big part of what makes us different from other utilities. You can learn more about capital credits by visiting our capital credits page. If you have questions, please contact us at 704-289-3145.