Each holiday season comes with the excitement of finding the perfect gift for our loved ones. Just like you anticipate the joy of watching your friends and family open gifts, your cooperative team at NWEC looks forward to this time of year because it means we can give back to our members in the form of capital credits. 

Electric cooperatives like NWEC are nonprofit organizations that operate at cost. NWEC is owned by the members we serve, and the money it takes to cover our day-to-day operating costs comes directly from members paying their monthly electric bills. At the end of each year, not coincidentally during the season of giving, NWEC returns excess revenue — referred to as “capital credits” — to members. 

How do capital credits work? 

After paying for the year’s operating expenses and making any necessary investments in infrastructure, the co-op returns excess revenue to members in the form of capital credits. Each member’s capital credit amount is determined based on the amount they paid for electricity that year. 

If you were a member of NWEC in 2005 or 2024, you will notice a “capital credit retirement” line item and a credit on your bill due in December. 

This year, NWEC will return more than $760,000 in capital credits to members. The amount retired this year is the remainder of your allocation for 2005 and 20% of your allocation from 2024 (allocation notices were included on your bill for March usage). If you were a member in 2005 or 2024, you get a return on your ownership. Checks will be sent to former members’ last known addresses and current members’ credits will be applied to their electric bills. 

Returning capital credits to members instead of outside parties is just one of the many practices that make co-ops different from other electric providers. NWEC only uses the money we need to operate the co-op and ensure our members have access to reliable, at-cost electricity when they need it. The rest is given back to you, our members. Doing the right thing by our members is part of our commitment to you because to NWEC, community is far more important than profits. 

From your friends at NWEC, we wish you a safe and merry Christmas, and a prosperous New Year!