A Wonderful Time for Capital Credits

By Dave Frick, MCREA General Manager

It may sound a bit cliché, but this really is the most wonderful time of the year. The holidays lend way to some of my favorite memories, favorite traditions, and of course, my favorite foods. Every year I cherish the time spent with family and friends, whether it’s playing card games, opening gifts,or watching football. There’s a special excitement and joy to the season, and I’m grateful for the opportunity to share more good news.

At the October meeting, your Morgan County REA Board of Directors elected to retire more than $4 million in capital credits to you, our members. Early this December, capital credits checks will be mailed to anyone who was a Morgan County REA member in 2005, 2019, and 2020 — just in time to help with some of your holiday shopping.

Capital credits are unique to member-owned electric cooperatives like ours, making this one of the best perks of being a MCREA member. Why do we give capital credits? The answer is simple. As a MCREA member, you’re part owner of our co-op. By paying your power bill each month, you contribute to the maintenance of our system and distribution of safe, reliable electricity.

Just like any business, MCREA has revenue and expenses; when we have remaining funds at the end of a given year, we set that profit aside as capital credits. These reserves help manage rates, cover emergency expenses, and reduce the amount of money we need to borrow from outside lenders to build, maintain, and expand a reliable distribution system.

When financial conditions permit, those funds are retired and returned to our members in the form of capital credits. Anyone who was a member during those years receives a check based on how much power they purchased. Even if they move or are no longer a member, they still receive a check. That is why it is important to make sure our office has your most current contact information, so that your check makes its way to you.

Capital credits reflect your contribution to MCREA. After all, this is your electric co-op. Your membership. Your money. While investor-owned utilities send profits to outside shareholders, MCREA sends them back to the members who made it possible.

On behalf of MCREA’s board of directors, we are proud to deliver these capital credits to the members we serve. We hope this year’s check will add to the happiness and warmth of the season.

May you all have a very merry Christmas and happy new year!