So, you like receiving those capital credit payments, but you're not sure exactly why you get them. It's simple, really. Mor-Gran-Sou is a nonprofit business. We exist only to provide goods and services to you, our members, not to make a profit for a shareholder or investor. Cooperatives are operated to provide at-cost electric service to their members.
A co-op's net margins, or what is left above expenses and reserves, do not belong to the utility; they belong to the members. The margins must either be used to improve or maintain operations, or be distributed to the members.
So, when all the expenses are paid, the cooperative's margins are credited to you in the form of capital credits. As the financial condition of your cooperative allows, you are paid these capital credits in cash. In the meantime, your capital credits are your equity in the cooperative.
Refunds are allocated based on the amount of business a member does with the cooperative -- the more electricity used, the larger the capital credit check.
If you have questions about your capital credits or would like a more detailed explanation, contact us at Mor-Gran-Sou.
- Request for Early Retirement of Capital Credits (PDF format)
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