Home » Member Services » Capital Credits

Capital Credits

MCREA Retires $450,000 in Capital Credits

At its October, 2009 meeting, the Morgan County Rural Electric Association Board of Directors passed a resolution to appropriate $450,000 from the general funds of the cooperative to retire capital credits. The cooperative will retire $450,000 of 1994 and 1995 cooperative capital credits, to be dispersed to cooperative members for those years.
 
Therefore, all members who received power from MCREA during 1994 or 1995 will receive capital credit checks.

Morgan County REA is a cooperative business, owned by its members. Cooperative businesses differ from investor owned utilities because they operate to serve the needs of the members, not to increase the profits of stockholders.

When the cooperative experiences greater income than expense, the margins (profits) are returned to the members in the form of capital credits. Investor owned utilities, on the other hand, return their profits to stockholders, who may or may not be customers of the company.

Each year, Morgan County REA’s accounting department determines if surplus funds were collected from the sale of electricity. If surplus funds are realized, the excess funds are allocated to a capital credit fund.

Every year,Morgan County REA identifies the portion of capital credit funds that came from each electric consumer based on the amount of electricity that he or she bought that year. This process is called capital credit allocation.

The amount of capital credit funds allocated in each member’s name is kept on record. Each year, Morgan County REA informs its members of the capital credit funds allocated in their names for the previous year. The co-op also informs members of the total capital credit funds allocated in their names since the beginning of their membership with the co-op.

Morgan County REA would like to notify all who were co-op members in 1994 or 1995 that they should have received capital credit checks in the mail December. If you were an MCREA member in those years and did not receive a check, please call the office at 970-867- 5688.