Alfalfa Electric’s Board Policy No. 604 explains the allocation, transfer, and retirement of Capital Credits.
Email or call during business hours, and an AEC team member will walk you through claiming your capital credits.
Note: Capital credits under $50 are automatically applied to your electric bill.
Capital Credits (margins) are to a Cooperative what profits are to a private business. As a member-owned entity, Alfalfa Electric works diligently to operate all segments of operation at cost. This results in any margins (profits) being returned to you, the co-op member. Your share of these margins is called Capital Credits.
At the end of the year, net margins are allocated to each member in proportion to the member’s Cooperative purchases during the year. The Board of Trustees decides when to retire Capital Credits based on the Cooperative’s financial condition.
In the meantime, Alfalfa Electric utilizes the money as working capital for operating and reinvesting in the Cooperative until a determination is made.