It's Your Money, and Here's How it Works
Capital credits are just one of the ways United Power is different from other utilities. We’re different because we’re owned by you, our members. As we’re heading into our retirement cycle, here’s a brief synopsis of how capital credits work.
Step One: Membership
If you receive power from United Power, you are not just another customer. You are a member. Members have unique privileges, one of which is the principle of economic participation. A portion of each electric bill goes toward the cooperative’s operation and infrastructure, making you a part owner.
Members may also vote annually in board elections or run for a board seat to make their voices heard. By actively engaging and participating with the cooperative, you will always have a voice in our operation.
Step Two: Allocation
Every spring, United Power looks at the prior year and allots any funds remaining after all expenses are paid into a budget item called “patronage capital.” These designated funds are then “allocated” to members, based on the prior year’s electric consumption – the more power you use, the larger your allocation.
The allocation is not a check, but a bookkeeping of the amount of money you have invested into the cooperative’s electric system based on your electric consumption. This allocation amount is reflected as an actual dollar amount on your bill in May each year.
Step Three: Retirement
Every year our board decides if a capital credit “retirement” is feasible. If they decide to retire capital credits the money is paid out or “retired” from each member’s account, based on their past electric use and length of service. At United Power, anyone who receives a retirement of $10 or more receives a check, and any amount under $10 is returned as a credit on members’ bills.
Look for more information about this year’s capital credit retirement in our August issue, and we’ll tell you how to enter to win a prize just for telling us how you’re going to use your capital credit refund!