CoServ retires record $16M in Capital Credits as a credit on August bills
Eligible CoServ Members will receive a bill credit in August as your electric cooperative retires a record $16 million in Capital Credits. It’s the first retirement since 2020.
The retirement applies to all eligible Members who joined the co-op prior to 2023.
Capital Credits are one of the biggest advantages of being with an electric co-op. Instead of paying dividends to shareholders, CoServ allocates margins (excess revenue) to our Members based on the amount of electricity purchased within the year the margins were earned.
In May, the CoServ Board of Directors voted to retire a portion of the Capital Credits. Active Members will receive them as bill credits on their August bills, typically the highest of the year.
“At CoServ, our Members are the reason for everything we do and the Capital Credits are one of the best examples of that, along with providing reliable, safe electricity and exemplary customer service,” said Ken Turner, Director of Finance. “Members are the owners of the co-op so we are proud to return this money to them at a time when they may need it most.”
The Capital Credits also flow back to your community in other ways as your local city and school district, who are CoServ Members, receive Capital Credits for their electricity purchases, too.
While this is the first retirement in two years, CoServ continued to allocate Capital Credits in 2021 and 2022 to an account maintained by CoServ in your name. Capital Credits provide the equity needed for CoServ to conduct business and meet financial obligations.
At the CoServ Electric Board of Directors’ discretion, Capital Credits are retired (paid) based on the financial outlook of the co-op.
Former CoServ Members who have moved out of the service territory can still receive Capital Credits for the time they were on our lines. This will be mailed as a check to the most recent address on file. So, it’s critical to keep your forwarding address current. Email [email protected] to update your address.