You have probably heard about capital credits, or noticed the credit on your bill last August. But have you ever wondered just what does this credit from your electric cooperative really mean?
Under the unique cooperative business model, earnings are calculated at the end of the year. Anything left over after operating costs and other expenses is called a margin. Over a period of time, these margins are retired, or paid back, to every consumer of the electric cooperative. This is known as a patronage capital credit.
Because you are a member of Wayne White Counties Electric Cooperative, you own a share of your cooperative’s assets. That means you own a piece of the business. Upon approval from the directors, Wayne White Electric returns retired margins in the form of capital credits on your bill. In recent years, this has occurred annually.
That means that every member receives a capital credit based upon when you began receiving electric service with the cooperative. Our commitment to returning profits back to our member-owners is a key element of the cooperative difference, and this unique business model.
The amount allocated back to members is based on the amount of electricity that each member paid during the year(s) that are being paid out. Most cooperatives, including Wayne-White Electric, hold onto allocated capital credits for awhile to invest in the cooperative’s electric system and to cover emergencies, such as natural disasters and other unexpected events, all of which may require new construction of power lines including poles and wires. This action helps Wayne-White Electric provide reliable service at a stable, affordable cost.
This year, Wayne-White Electric’s board of directors has approved returning over $2 million in capital credits to our members. These capital credits will be paid out based upon members who received electricity from the cooperative during a portion of 2007. If you came on to Wayne-White Electric lines after 2007, you will not receive a capital credit on your bill until we begin paying back the margins for the year in which your service began.
The amount allocated for capital credits for 2025 can be found on the top of your June and July bills. This is not an amount you will receive this year, but once we begin paying out for the year 2025.