Board approves capital credit retirement
Burke-Divide Electric Cooperative isn’t like other utilities—because it’s owned by you. As a member, you’re not just a customer; you’re a part-owner of the cooperative.
That ownership model means BDEC operates at cost. We collect only what’s needed to provide reliable service, maintain our system, and invest in future improvements, not to generate profits for outside shareholders.
When revenues exceed operating expenses, the remaining funds are called margins. Instead of going to investors, those margins are allocated back to members in the form of capital credits, based on how much electricity each member uses.
These capital credits represent your ownership equity in the cooperative. They are retained for a period of time and used to support essential infrastructure, things like power lines, transformers, trucks, and system upgrades, helping us keep rates stable while maintaining reliable service.
When the cooperative’s financial position allows, the board of directors approves the return, or retirement, of those capital credits to members.
This year, the board has approved a general retirement totaling $1.47 million. This includes a portion of capital credits allocated in 2014, along with generation and transmission credits remaining from 2011 and a portion from 2012. In addition, we are retiring capital credits to former members whose balances were less than $250.
Capital credit checks will be available at the annual meeting in Kenmare on June 10. If you’re unable to attend, your check will be mailed to you.
If you have questions about capital credits or any aspect of your cooperative, we encourage you to reach out. We’re always here to help and proud to serve our member-owners.
Until next time,
Jerry King
General manager