Capital credits: a co-op benefit

Posted on Sep 01 2019 in Warren County REMC

As a past or present member of Warren County REMC, you may now be familiar with the capital credit disbursement process. When revenue exceeds operating expenses in any given year, the excess is termed “earned margins.” 

Each account holder is allocated a portion of these margins in direct proportion to the amount of electricity purchased, called capital credits. The Warren County REMC board of directors authorizes payment of generation and transmission capital credits from our power supplier, Wabash Valley Power Alliance, or payment of capital credits from your cooperative to account holders. This assures that we continue our rates at an affordable level, keeping the financial impact for Warren County REMC to a minimum.

We began this process in December 2016 issuing checks from Wabash Valley Power Alliance and sent checks from Warren County REMC in July 2019. A summation of the paid capital credits schedule is in the table below.

Your capital credit check is one of the benefits of belonging to an electric cooperative. When you buy electricity from Warren County REMC, you are more than a customer — you are a member and an owner. That means the profits we make come back to you in patronage capital credits.

Thank you for your membership!