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Capital Credits

WREC has returned more than $307 Million since 1990 in Capital Credit's and Revenue Rate Reductions.

The capital credit concept is often misunderstood, and the following information is offered to help clarify this concept.

What are Capital Credits?

Capital Credits are an allocation of funds that represents your share of the ownership in the Cooperative. Capital credits can also be called member equity. Although accountants often cringe at the analogy, the distribution of capital credits is often compared to dividends in a for-profit company.

WREC is a member-owned, non-profit organization. At the end of each year and after all operating expenses have been paid, the remaining margins are allocated to each member based on the amount of energy purchased. The amount refunded from your accumulated total is determined by WREC's Board of Trustees and legal requirements.

Will WREC Refund All of these Capital Credits?

Yes, as a non-profit organization 100% of the margins must be returned to member-owners. So, why didn't I get 100% of my accrued Capital Credits? There are two reasons why WREC doesn't refund all of these credits each year:

  • It would be necessary to raise rates beyond affordable limits to generate enough capital to refund all accrued credits.
  • Lenders require your Cooperative to maintain certain levels of capital as a reserve.

If a member-owner moves away, how will they get their Capital Credits?

It is important to notify your Cooperative of your forwarding address so we can send future refunds to you. It is also recommended that you keep capital credit information with your important papers, so your family members will know of future refunds.