Capital credits are unique to cooperatives like Wasco Electric. Private power companies make profits and pay dividends to stockholders. Cooperatives, on the other hand, work on a nonprofit basis and allocate their operating income back to their members.
Capital credits represent your share of the cooperative’s operating income (operating revenue remaining after operating expenses). The amount designated in your name each year depends on your energy purchases for the year. To calculate this, we divide your annual energy purchase by the cooperative’s operating income for the year. The more electricity you buy, the more capital credits you earn.
Yearly, each member who received service that year will be mailed a statement of their capital credit allocation. The member’s allocation amount is based on the year-end operating margin.
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