- It starts when you pay your bill
CoServ tracks how much electricity you use and pay for throughout the year. Included in each payment you make is your contribution to the day-to-day operation costs of your electric cooperative.
- Recording and reporting
Like all companies, at the end of each year, we calculate our annual margin (excess revenue). But because CoServ Electric is a cooperative, we divide this margin proportionally by the amount of electricity each Member uses throughout the year and report to each of you what your share is. This is called a Capital Credit Allocation.
- Where’s the money?
The money—called Capital Credits—is invested in equipment and manpower needed to meet the current and growing demand for electricity.
- Do I ever receive this money?
Yes. Each year, CoServ Electric’s Board of Directors reviews company finances, and when our financial condition permits, the Board decides to retire (pay) Capital Credits to our Members (customers) based on their allocated share (see No. 2). Capital Credit Retirements are based on the amount of electricity you purchase over the course of a nearly 20-year cycle. For example, in 2017 a 16-year member living in a 2,000-square-foot house received a Capital Credit payment of $52.52.
- How will I know when I receive Capital Credits?
Notices about Allocations and Retirements always refer to previous years. If you joined CoServ this year, you can expect Allocation notices and Retirement statements at a future date.
Make sure to keep us updated on future addresses so we can contact you about your Capital Credits. To make an address change, please email us at firstname.lastname@example.org.
For commonly asked questions, visit our Capital Credits FAQ.