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Member Info
Capital Credits
Capital credits represent your share of the cooperative's earnings. As a member of a not-for-profit cooperative, any revenue left after covering expenses is allocated back to members based on their usage. This unique benefit reflects the cooperative’s commitment to providing value and returning profits to those it serves.
How Capital Credits Work
As a member of an electric cooperative, YOU get the credit!
When you signed up to receive electrical service from McKenzie Electric Cooperative, you became a member-owner of an electric cooperative. While investor-owned utilities return a portion of any profits back to their investors, electric cooperatives allocate excess revenue to members as “capital credits,” and retire, or pay them, when the co-op’s financial condition permits.
People and organizations who were members of McKenzie Electric Cooperative during the selected retirement years receive their capital credits earned for those years. The amount of each allocation and retirement is based on how much individual members paid the co-op for electric service during that period.
Types of Utilities
Who owns your utility?
Investor-Owned
Privately owned by shareholders/investors
For-profit
Public
Owned by cities, states and counties
Not-for-profit
Cooperative
Owned by the consumers they serve
Not-for-profit
When you signed up to receive electrical service from McKenzie Electric Cooperative, you became a Cooperative member-owner.
Step by step
How capital credits work
- MEC keeps track of how much electricity you purchase and how much you pay for your service throughout the year.
- Then, we pay operating costs for things like power generation, maintenance, depreciation and taxes.
- Any remaining operating revenue is then allocated as “capital credits” to MEC members.
- Capital Credits are accumulated under each unique member and retired (paid out) on a rotation cycle.
As MEC’s financial condition permits, your board of directors decides to retire and pay out capital credits.
TO YOU!
Getting paid
How do I receive my capital credit retirement?
Bill Credit
Members have the choice to receive their capital credits as a credit on their active account.
OR
Check Payment
Members can receive their credits as a check. A $20.00 minimum must be met before checks are written.
The Cooperative Difference
This is just one of the many ways it PAYS to be a member of a cooperative!
Watch
What are Capital Credits?
Unclaimed Capital Credit List - 2026
Questions about capital credits? Call us Monday-Friday, 8 a.m. to 4:30 p.m.