What Are Capital Credits?

CEC tracks the amount of electricity used and what members pay for it throughout the year. At the end of the year, the company’s financial statements show whether or not revenues exceeded costs resulting in a net margin (profit). A portion of these margins are allocated to members as capital credits based on their electricity usage. The allotted amount is held in a capital fund account by CEC until funds are distributed to members who qualify for credit payments.

In 1981, the Board of Directors determined the financial condition of Central Electric warranted the payment of Capital Credits starting with the year 1950.  Since that time, credits for service years with positive net margin have been retired and paid back in the membership, in accordance with the 25-year payout goal.

For more information on capital credits, you may download the Capital Credits Brochure (PDF).