As a not-for-profit electric cooperative, CGEMC operates differently from an investor-owned utility. Each month, member payments help cover the cost of providing electric service. That includes purchased power, poles, lines, substations, equipment, maintenance, storm restoration, employees, and other costs necessary to operate and maintain the electric system.
Capital Credits are one of the benefits of being a member of a not-for-profit electric cooperative.
How do Capital Credits work?
At the end of each year, CGEMC compares the revenue collected with the cost of providing electric service. When revenue exceeds expenses, the remaining amount is called a margin. Because CGEMC is member-owned, those margins are allocated to members as Capital Credits based on their electric purchases during the year.
Are Capital Credits an extra charge on my bill?
No. Capital Credits are not an additional charge on your electric bill. They represent your share of the Cooperative’s annual margins.
What happens to Capital Credits before they are returned?
The electric system requires continual, long-term investment. Poles and lines must be replaced, substations upgraded, equipment maintained, and new infrastructure built as our communities grow. Capital Credits help fund these needs and reduce the amount CGEMC must borrow. This helps keep financing costs lower while supporting a strong, reliable electric system for members today and in the future.
Why aren’t Capital Credits returned right away?
Capital Credits are generally returned on a first-in, first-out basis, meaning the oldest Capital Credits are typically returned first. This allows member capital to support the electric system for a period of time before being returned.
When are Capital Credits returned?
Capital Credits are returned to members over time when the Cooperative’s financial condition allows, and the Board of Directors approves a retirement. This year, paper checks will be mailed December 5, 2026, to eligible CGEMC members.
