Did you know that as a MEMBER of an electric cooperative, you are also an owner?!

At the end of each year, any excess margins we make are allocated back to our co-op membership as capital credits, based on your electricity usage. 

These credits help fund our operations and portions are retired (paid out) when they are no longer needed for operating expenses. Our trustees, democratically elected by our co-op members, make these retirement decisions, which are usually paid out in December and represent a portion of your total allocation. 

On this month's bill (June 2024), you will notice your 2023 Capital Credit Allocation statement (pictured below).

This statement is not available for cash, is not a credit to apply to your monthly bill, nor is it an amount owed.

If you have questions about your allocation notice, check out our bill inserts that were included in this month's bill (in both English and Spanish), continue reading more about capital credits below, or email wecibi@weci.net today!

What is a Capital Credit Allocation?

As a member of an electric cooperative, you are not just a customer but also a member-owner. Here’s how it works:

1. Cooperative Structure:

   • Unlike investor-owned utilities, our electric cooperative is owned by members like you—the people we serve.

   • Any profits or margins we make are not paid out to shareholders or far-away investors but are instead allocated back to the members.

2. Allocating Profits:

   • Each year, we calculate our total revenue and expenses.

   • If there is any money left over (i.e., the cooperative has made a profit), this is referred to as margins.

3. Capital Credits:

   • These margins are allocated to members in the form of capital credits based on how much electricity you purchased from the cooperative that year.

   • Think of it as your share of the profits because you are a part-owner of the cooperative.

4. How Allocation Works:

   • The more electricity you use, the larger your share of the margins.

   • Your share is recorded in your capital credits account with us.

5. Retirement of Capital Credits:

   • Capital credits are not immediately paid out. We use this money to fund operations, maintenance, and improvements.

   • Periodically, our trustees will decide to retire (or pay out) a portion of the capital credits to members.

   • When this happens, you receive a check or a bill credit for your portion of the retired capital credits, typically over $25.

Capital credits reduces our reliance on external borrowing, keeping costs lower for everyone. It also is another way it pays to be a cooperative member!

Allocations are your share of the cooperative's profits, based on your electricity usage, and recorded in your account.

When a retirement decision is made by our WEC Board of Trustees, your credits are paid out to you at the end of each year, typically either via a bill credit or check.

Stay tuned for more information on any capital credits retirements this upcoming December! Or reach out to your local office with any specific questions. We're here for you!