If you are receiving 1 this year, your capital credit check has likely already arrived in your mailbox. Clearwater Power mailed more than $1.12 million in checks to active and previous cooperative members on October 18.
Capital credit payments are unique to cooperatives. Unlike investor-owned utilities that maximize profits to pay dividends to shareholders, not-for-profit electric cooperatives provide members with at-cost electric service. At the end of each year, after paying all expenses, any excess revenue—called margins—is allocated to members in the form of capital credits.
How much each member receives is based on how much electricity they buy. Capital credits are like equity in the cooperative. Clearwater Power uses capital credits as operating capital, which reduces the need to borrow money from banks, helping to keep costs down.
Each year, the member-elected board of directors examines the financial condition and needs of the cooperative. They determine if a portion of the capital credits should be retired. Any capital credits retired are returned to members. This year, 4% was retired, and this is the amount you are receiving via check. If you are new to the cooperative, note we don’t send checks until the amount retired exceeds $5.
Clearwater Power has refunded capital credits every year since 1988, with payments totaling more than $21.4 million. Clearwater Power members are owners, sharing in the construction, maintenance, and prosperity of our electric cooperative.
If you have questions about your capital credit check, or to update your address or other contact information, contact our Member Services Department at (208) 743-1501.
Allocation vs. Retirement
An allocation is made annually for each member, based on the amount of electricity purchased the previous year. It is your share of the margins Clearwater Power sets aside into a separate account to be used as operating capital for improvements and maintenance. Clearwater Power sends allocation letters notifying members of their allocated capital credits each July.
A retirement is the amount you receive back as a capital credit check. It is a percentage of your total capital credit balance. The amount retired is decided annually by the board of directors based on the financial condition and needs of the cooperative.
Don't forget: If you move outside of Clearwater Power service territory, remember to document your new address with the cooperative so we can continue to return any capital credits you are eligible to receive in the future.