CoServ Board of Directors approves $12M in Capital Credits
The CoServ Electric Board of Directors voted to retire $12 million in Capital Credits to Members. Current Members who joined the co-op prior to Jan. 1, 2024 will receive the Capital Credit as a credit on their August bill.
“We chose to apply Capital Credits to August bills because they’re typically the highest of the year,” said Stephen Meers, Senior Director of Customer Operations. “This provides relief to Members when they need it most.”
CoServ President and CEO Donnie Clary announced this year’s Capital Credit retirement at the 2024 CoServ Annual Meeting on June 4.
“This process is a unique advantage of being a Member of a cooperative,” Donnie said. “The co-op’s margins, or profits, belong to you, not shareholders. Your investment allowed CoServ to invest in tomorrow and ultimately return a portion of those funds back to you.”
Operating Revenues
The amount you pay for electricty each month.
Operating Expenses
The cost to maintain and deliver reliable electric service.
Annual Margins
The margin after all expenses are paid is divided proportionally among CoServ Members.
The process starts when you pay your electric bill.
Each year, CoServ allocates its margins, or profits, to an account held in each Member’s name. The margins are allocated based on each Member’s electricity purchases. The more power purchased each year, the higher the Capital Credit allocation.
The allocated money is then used to fund operations of the co-op. Each year, the CoServ Electric Board of Directors reviews company finances, and when our financial condition permits, the Board may retire a portion of the Capital Credits to our Members based on their allocated share.
Former Members will receive a mailed check at the current forwarding address on file. To update your forwarding address, reach out to our Customer Care Specialists at [email protected].