What Is A Capital Credit?
VEC is a member-owned, not-for-profit organization and does not earn profits. Instead, any revenue above the cost of doing business is considered by the Cooperative as margins.
- The Cooperative tracks how much electricity you buy and how much money you pay for it throughout the year.
- At the end of the year, the co-op completes financial matters and determines whether there are excessive revenues, called margins.
- The co-op allocates margins to members as capital credits based upon their use of electricity during the year.
- When the co-op’s financial condition permits, your board of directors/trustees decides to retire, or pay, the capital credits.