Capital credit retirement
Burke-Divide Electric Cooperative isn’t like other utilities—you, as a consumer and a member, own the business.
BDEC operates at cost— collecting enough revenue to run and expand the business with no need to raise rates to generate profits for distant shareholders. Any money left over from revenues after all operating expenses are deducted are called margins by cooperatives.
Each year, these margins are allocated, or credited, to members receiving electrical service based on the amount of electricity purchased from Burke-Divide Electric Cooperative.
Money allocated back to you and other members is called capital credits. These capital credits are put into a "holding account" for a number of years and used by BDEC to fund capital needs for items such as power line construction, transformers, trucks, inventory and other equipment.
This "allocation" becomes your equity in the cooperative and is maintained in a separate account assigned to you. When the co-op’s financial condition permits, the co-op retires, or pays, the capital credits to members.
At this year’s Annual Meeting, Burke-Divide Electric Cooperative retired capital credits totaling $1.47 million. This retirement included Cooperative capital credits allocated for 2013 and G&T capital credits allocated for 2008 and 2009. In addition, capital credits were retired to former members of the Cooperative whose capital credit balances were less than $250. If you weren’t able to attend the Annual Meeting and were issued a capital credit check, the check was mailed to you.
As always, I encourage you to contact us with any questions you have regarding the capital credit process or your co-op in general.
Until next time,
Jerry King
