Nodak Electric Cooperative is announcing that it will be returning $2 million in capital credits to its members who paid for electricity for the years of 2001-2002. Nodak Electric Cooperative’s Board of Directors approved the retirement at their March 2020 meeting.
As a not-for-profit organization, Nodak Electric Cooperative operates at cost, and any excess revenues, or margins, are returned to our members in the form of capital credits. Since its inception, Nodak Electric Cooperative has retired $47 million back to members.
For active members, capital credits earnings will be applied in May, against your balance due. Notification of the retirement is included in the message box of your statement.
For inactive members, generally, the cooperative will issue capital credit checks in May. However, if the retirement amounts are less than $10.00, members will not be issued a check unless one of the following circumstances apply:
- The member will not be receiving any future retirements from the cooperative post 2002 allocation year.
- The current retirement amount plus any retirements from prior years have accumulated beyond the $10.00 threshold. In this case, the current retirement amount, along with the previously retired amounts, will be returned to the consumer-member as a check.
How does the Capital Credit process work?
- Nodak Electric Cooperative keeps track of how much electricity you buy and how much money you pay for it throughout the year – this is your patronage.
- At the end of the year, the cooperative completes financial matters and determines the amount of margins to allocate.
- Members receive a portion of the margins as capital credits based upon the amount of revenue each member contributed to total margins throughout the year. This is your allocation.
- The cooperative notifies you of your annual allocation of margins through the use of an allocation statement. That statement will be included with your May billing.
- When Nodak Electric Cooperative’s financial condition permits, your board of directors decides to retire, or pay, the capital credits for previous years.