Membership Owner Participation

Q. What are Capital Credits?

A. Capital Credits are each member's share of KIUC's margins in proportion to the amount paid for electricity during the calendar year.

Q. What are margins?

A. Margins are what is left over at the end of the year after all bills are paid. In other business organizations, this would be called profit.

Q. Why don't you call this profit?

A. As a cooperative, we are here to provide a service, not to make a profit. Any revenue collected that is not needed to cover the cost of providing service is set aside and divided among the members in proportion to their patronage (how much electricity they paid for during the year).

Q. What is my share of the margins?

A. Your share of any operating margins is credited to your Capital Credits account, and a notice of Capital Credits is mailed to inform you of this amount. You should keep this notice with other important papers.

Q. Why don't you send me the money?

A. The Co-op began with borrowed money. The mortgage holders have certain restrictions on us to safeguard their investment.

Q. Is interest paid on Capital Credits?

A. No. If the Co-op paid interest on Capital Credits, the money to pay the interest would have to be collected from the member-owners. We have only one primary source of income - the sale of electricity. Rates would have to be increased to pay interest on Capital Credits.

Q. If I move off Co-op lines, will I still get my Capital Credits?

A. Not until a general refund is made to all members who furnished capital at the same time you did. Facilities were built to serve you, and leaving the area does not alter your obligation to furnish capital to help pay for those facilities. It would be discriminating to refund those who move away and not refund others served during the same time. You should keep the Co-op informed of your current address so that you will receive your check when a payment is made.