Capital Credits

At our cooperative, we believe in putting our members first and sharing in the success of our collective efforts. Capital Credits represent one of the tangible ways we demonstrate this commitment.

So, what exactly are Capital Credits? In essence, they represent your share of the margins or profits generated by the cooperative. When our revenues exceed operating expenses, these excess funds are allocated back to you based on your electricity usage and active participation in our cooperative. 

How do I earn Capital Credits? You earn Capital Credits simply by being an active member of our electric cooperative. The amount of Capital Credits you receive is based on the electricity you use throughout the year. The more electricity you consume, the more Capital Credits you earn.

Can I access my Capital Credits whenever I want?  Capital Credits are allocated and retired on a schedule determined by the cooperative's board of directors. The board considers the cooperative's financial health and long-term planning when making decisions about Capital Credit retirements. Members are typically notified when their Capital Credits are retired and can claim them at designated intervals.

How do I know how much Capital Credits I have earned? Each year, you will receive a Capital Credits statement that details the amount of Capital Credits allocated to your account. This statement will provide a clear breakdown of your electricity usage and the corresponding Capital Credits earned.

What happens to my Capital Credits if I move or leave the cooperative? If you move or leave the cooperative, your Capital Credits remain on record under your name. The cooperative will continue to retire and distribute any eligible Capital Credits to you even if you are no longer an active member. Please inform KEM Electric if you change addresses. 

Did you know electric cooperatives give cash back to their members over time? Learn how, through capital credits.