There are many advantages of being a cooperative member – earning Capital Credits is just one of those advantages!
What are Capital Credits?
Capital Credits are each member’s share of the margin. As a member of Macon Electric Cooperative, you are also an owner, which means if there is any revenue left over after all the Cooperative’s operating expenses are paid each year, you will be allocated a portion of that margin. As a cooperative, we are here to provide service to our member-owners – not to make a profit!
What does allocated mean?
It means MEC will divide any margin among all of the member-owners, based on the amount of electricity they paid for during the year, and set it aside for future distribution.
Why can’t I receive the money now?
Each year your Board of Directors considers the financial state of your Cooperative and determines what and how many capital credits will be returned. This decision is based on many factors, including restrictions placed on the Cooperative by government institutions and the overall financial stability of your Cooperative (it is necessary to maintain an appropriate amount of equity in every business in order to stay in business).