Cuivre River Electric Cooperative (CREC) members received $7,379,000 in late July as part of the cooperative’s capital credit refund program.

The amount was approved by CREC’s Board of Directors earlier this summer.

Capital credits are similar to profit margins in other businesses and represent members’ ownership equity. If funds remain after all expenses for providing electric services have been met, capital credits are allocated after the close of a fiscal year. Member capital is used in place of commercial loans to make infrastructure improvements and lower borrowing expenses, and operational costs.

The amount of each member’s refund is based on a formula determined by the quantity and cost of kilowatt-hours (kwhs) purchased annually. Since 1976, CREC has returned just over $145 million to current and former members.

The average check amount refunded was $70. Capital credits are a unique benefit of being served by an electric cooperative and make CREC very different from most Missouri utilities. Investor-owned electric utilities send their margins, or profits, to stockholders, and municipally-owned utilities keep their profits.

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