Capital Credit Checks

Putting Margins Back in Your Pocket

mailboxes on side of roadThis year, over $913,000 will be paid to over 11,000 active (and inactive) co-op members. Capital credit payments are unique to cooperatives; many people are unsure of what they are and how “allocations” differ from payments.

At the end of each year, if the co-op brings in more money than operating costs, that money is called a “margin.” Margins are allocated to each member based on how much electricity they purchased (also called patronage). They aren’t necessarily paid out that same year. 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 Board of Directors examines the financial condition of the co-op and determines if there will be a payout and how much it will be, at which point, credits can be refunded, in the form of a check, to members.

This is the 29th consecutive year that Clearwater Power has refunded capital credits. Since 1988, total payments are over $14 million. This year’s disbursement is about $960,000.

If you ever move off of co-op lines, please remember to keep us updated with your current address so we can continue to pay you the credits you’ve earned. Capital credits are just one of the advantages of being a member of an electric cooperative.