2020 Ends with Capital Credits Returned to WWVREMC Members
Thanks to financial planning and holding down costs, the board of directors has approved another retirement of capital credits. The cooperative retired 100% of Generation & Transmission (G&T) margins from 1992, as well as 100% retained distribution margins from 1993, plus 10% of 2019, were retired and returned to members.
About Capital Credits
Unlike investor-owned utilities that maximize profits to pay their shareholders, not-for-profit electric cooperatives do not exist to earn a profit. You receive capital credits because you are more than a customer; you are an owner of Whitewater Valley Rural Electric Membership Corporation. These credits represent your ownership in WWVREMC and are one of the unique and rewarding benefits you enjoy as a member of the cooperative. The amount you receive is based on two factors; your length of membership with the cooperative, and the amount of power used during the period being retired. Refunds less than $10 are applied as a credit on your electric bill. If your refund is more than $10, you receive a check in the mail.
When you signed up to receive electric service from Whitewater Valley Rural Electric Membership Corporation (REMC) you became a member—and owner—of a cooperative electric utility. While investor-owned utilities return a portion of any profits back to their investors, electric co-ops operate on a not-for-profit basis. So instead of returning profits, known as margins, to investors who might not live in the same region or even the same state as you do, we periodically retire capital credits (also called patronage capital or equity capital) based on how much you paid the co-op for electricity during a specified time period.