How it Works:

When a Cooperative’s revenues are greater than its expenses in a given year, it results in income we refer to as Margins.  Each member’s share in these margins are referred to as Capital Credits.  A members share or allocation of these Capital Credits is based upon the amount of electricity used in a specified year in relation to the electric usage of all members at that time.  The Cooperative retains these Capital Credits for use as working capital for a period of time, then they are paid back to individual members in the form of a General Retirement of Capital Credits.