It really does pay to own your electric company! KEA is retiring approximately $798,000 to our members this month. Active KEA members will receive a credit on their December monthly billing, and inactive members will be mailed checks.
Each year, the KEA Board of Directors reviews the Cooperative’s financial picture and determines the current year’s capital credit retirement. At the Regular Meeting of November 20, 2014, the Board took action to return 2.06% of the total unretired capital credits on file.
Because KEA is a cooperative and is owned by our members, the cooperative does not technically earn profits. Instead, any revenues, or money, received over and above the cost of doing business are considered “margins”. These margins are your capital credits and they represent the amount of operating capital the cooperative has to work with in order to finance the operation of the business and to build for the future.
The return of member-furnished capital is called the retirement of capital credits. Each member’s credit allocation is accumulated and totaled over the period of time that the member receives service. Each member earns the same percentage on their purchases, although the actual dollar amount credited will vary from member to member because it is based on total individual purchases. Receiving capital credits is one of the many benefits of owning your electric cooperative.
Merry Christmas and Happy New Year from all of us at KEA!