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Capital Credits


KEM Electric Cooperative is a nonprofit business. We exist only to provide goods and services to you, our members, not to make a profit for a shareholder or investor.

KEM's net margins, or what is left above expenses and reserves, do not belong to the utility; they belong to you the members.

These margins are based on patronage or total amount paid in. We call them capital credits.

The margins must either be used/retained as capital to improve or maintain operations, or be distributed to the members.

 Distribution of capital credits to the members happen as financial conditions allow and as the bylaw provisions are met.

Refunds are allocated based on the amount of business a member does with the cooperative -- the more electricity used, the larger the capital credit check

If you move from the KEM service area, please keep us informed of your address in future years.

This will allow us to forward payment when the capital credits are refunded for the years of your membership.

Please contact us with any questions.