Your capital credit check has likely arrived in your mailbox. This year, more than $960,600 in checks were sent to more than 11,700 active and inactive cooperative members.
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 operating expenses, any excess revenues—called margins—are allocated to members as capital credits.
How much each member receives is based on the electricity they bought the previous 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 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 and returned to members. This year, 4% of your capital credits were returned to you.
Clearwater Power has returned capital credits yearly since 1988, with payments totaling more than $20 million. In this way, Clearwater Power cooperative members share in the ownership, construction, maintenance — and prosperity — of our electric utility.
If you have questions about your capital credit check, or to update your address or other contact information, call our member services department at (208) 743-1501.
Allocation Versus Retirement
An allocation is made annually for each member, based on the electricity bought the previous year. It is your share of the net margins Clearwater Power sets aside into a separate account to be used as operating capital for reliability improvements and maintenance.
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.