What are capital credits?
Because your co-op is a not-for-profit electric utility that operates at cost, Logan County Electric Cooperative gives returns money to its members. This means that the co-op collects enough revenue from its members to maintain day-to-day operations and to invest in capital improvements, without the need to generate profits for outside shareholders.
The co-op’s margins — any surplus revenue after expenses are paid, like a business’s profits — is allocated to members at year-end, based on their electricity usage. This allocation is known as capital credits or patronage capital. Patronage capital signifies both your financial investment and your contribution to the cooperative’s operations.
Since a cooperative’s members are also the people the co-op serves, capital credits reflect each member’s ownership in, and contribution of capital to, the cooperative. All capital credits allocated for every year members have been served by Logan County Electric Cooperative are maintained until such time as the board of trustees retires them — paying them back to members.
Retirements are generally issued on a first-in, first-out basis — meaning the oldest credits are paid out first — though the board may choose otherwise in certain cases.
Members are responsible for keeping their contact information up to date to ensure they receive any eligible retirements.
What’s changing
Previously: Members received capital credits as a mailed check.
Now: Members will see them as an automatic credit on their electric bills.
Why we’re making this change
Convenience: Automatic bill credit, no deposit required.
Security: No risk of lost or stolen checks.
Efficiency: Saves money on printing and postage.
Effectiveness: Removes the possibility of mailing problems and eliminates the problem of unclaimed or uncashed checks.
When and how members will see it
Capital credits will show as credits on members’ bills that are due in December 2025, and future capital credits will be continue to be paid as bill credits.