Capital Credits

Because MWEC is a cooperative, the revenue generated in excess of expenses each year is allocated to our members in the form of patronage. The amount each member is allocated is based on the net margin (revenue less expenses) of the cooperative, and the amount of total electricity purchased by each member. Once a year, this allocation is done. Each member is sent a capital credit statement showing the current capital credit balance and a total of all the years combined. This statement shows your equity in MWEC.

Every year the MWEC Board of Directors reviews the overall financial condition of the Cooperative and determines its financial requirements. There are times when the Cooperative has a greater amount of funds built up in reserve than it feels will be necessary. In this case, the Board of Directors may authorize a "retirement" of capital credits in the form of cash payments to the members.

Remember

Capital credits are not a debt owed to you by the Cooperative. They represent your net equity in the company.

Capital credits are used by the Cooperative to improve your service and build the system. Without them MWEC would have to borrow funds, thus increasing costs and your rates.

As a member of the Cooperative you enjoy a unique privilege. You actually own the company providing your electric service.

For more information regarding capital credits, please contact Brenda Jarmin (800.279.2667, bjarmin@mwec.com).