Unlike investor-owned utility companies that strive to generate profits for shareholders, any profits or margins made by Central Rural Electric Cooperative are returned as capital credits to our members.

Capital credits represent each member’s ownership in Central. Margins, or capital credits, are allocated to members of the cooperative based on their electric service purchase from the year being allocated. 

The cooperative uses these margins as capital to operate for a period of time and then returns it to members. Retirement of capital credits is a return of member-furnished capital. Trustees determine when to retire capital credits based on the cooperative’s financial condition. 

Each year, the board of trustees determines if capital credits will be retired and approve the total amount to be paid back and the allocation years to be retired. If you were a member during those years, you will receive a check with your portion, which is based on the amount of electricity used. 

For the second year, members with emails attached to their accounts had the opportunity to donate their capital credits to benefit local communities, nonprofits and residents in need through the Central Community Foundation. 

Nearly 300 members donated more than $4,700 of their capital credits to the foundation. These donations will be included with the Operation Round Up donations and distributed through grants in 2023.

Capital credits are part of the cooperative difference, and are a unique benefit of being a member. The cooperative’s success is shared with you!

Capital Credit FAQs

Who gets a capital credit refund?
Every member who bought electricity during the years of service that are being retired.

What if I move out of Central’s service area?
If the board of directors issues a refund for any year you were a Central member, then you are entitled to capital credits! Keep your address current with Central to receive a check.

When does Central return capital credits?
When capital credits are distributed, checks are mailed in December.

How is my refund amount determined?
Capital credits are based on the amount of electricity you used during the years of service that are retired.

What happens to capital credits when a member dies?
A member’s family can bring a death certificate, and a will or trust to collect the remaining credits.