Capital Credits

At KEM Electric Cooperative, we believe in putting our members first and sharing in the success of our collective efforts. Capital Credits represent one of the tangible ways we demonstrate this commitment.

Capital credits represent a member's share of the cooperative's earnings, or "margins," which are allocated to members based on their usage of the cooperative's services. Essentially, when a cooperative has money left over after paying its expenses, those leftover funds, or margins, are allocated back to the members as capital credits. 

 

Capital Credits Search

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Allocation vs. Retirement

Capital Credit Allocations

Capital Credit Allocations Each year KEM Electric allocates a portion of the year’s margin to members. Allocations are: 

• Recorded in your account, but not paid out.
• Happens on an annual basis, once the financials are closed.
• Based on member’s energy usage for the year. 

Think of it like a savings account held by the cooperative. 

 

Capital Credit Retirement

Capital Credit RetirementA retirement is when the cooperative pays members a portion of their capital credits. Retirements are: 

• Approved payout of past allocations by board of directors.
• Dependent on the cooperatives financial health.
• Typically delivered by check.

Think of it like a refund check from the cooperative.

 

Capital Credits FAQ