Capital Credits

What are capital credits?

​

Capital credits represent your share of the cooperative’s profits or margins. As a member-owner of Co-Mo Connect Powered by Co-Mo Electric Cooperative, you invest in the cooperative by purchasing electricity. Any revenue remaining after covering operating expenses, repaying loans, and setting aside emergency reserves is allocated back to members in the form of capital credits. These credits reflect your ownership stake and the cooperative’s not-for-profit structure.

​

​

How do capital credits work?

​

When Co-Mo Connect generates profits, they are allocated to members based on their electricity usage during the year. These allocations serve as the cooperative’s equity, helping to repay debt, finance plant replacements, address storm damage, and prepare for contingencies.

​

The cooperative maintains records of each member’s allocated capital credits, which reflect their share of the cooperative’s equity. When Co-Mo's financial condition allows, the board of directors may decide to retire (or pay) these capital credits. At that point, members receive a refund, and their equity in the cooperative is reduced.

​

When and how will I receive my capital credits?

​

The decision to retire capital credits is made annually by Co-Mo’s board of directors, based on the cooperative’s financial health. Retired capital credits are typically issued as a bill credit on December statements to eligible members.

​

If you move out of Co-Mo’s service area, you may still receive refunds in future retirements. To ensure you receive your refund, it’s essential to keep your contact information up to date with Co-Mo Connect.

​

How does the cooperative determine who receives capital credits and how much they receive?

​

The amount of capital credits you receive is based on your electricity usage during the year. The more electricity you use, the larger your share of the cooperative’s margins. Each member’s share is carefully recorded, showcasing their ownership stake in the cooperative. When refunds are issued, the amount returned to each member is proportional to their allocated share.

​

Co-Mo's process ensures fairness and reflects its commitment to providing electricity at cost, with any surplus benefiting its member-owners.

​

​

​