Because Boone Power is a cooperative, that means you, as a customer, are also a member-owner. When you pay your electric bill, you gain equity in our cooperative and share in its financial success. We use operating capital to maintain and improve our distribution system so that we can carry out our mission of providing the most reliable electric service possible. 

Because we don’t exist to make a profit, after all expenses are paid, each year any remaining margins are credited to each member’s account according to the amount of electricity purchased. Think of it like a rewards or loyalty program — every kilowatt-hour you use builds up “points.” We call these capital credits.

Assigning capital credits to members, rather than paying dividends to distant stockholders, is one way your cooperative puts ownership into action.

Your equity in the co-op reduces the need for us to raise rates or borrow as much money (and pay as much interest) for expenses. The board of directors decides when to return some funds to members based on the cooperative’s financial condition. Capital credit disbursements can run years behind since margins are used to maintain our electric distribution system.

Just like you are a member-owner of Boone Power, Boone Power is a member-owner of Wabash Valley Power Alliance (WVPA). This cooperative provides the electricity that we buy and deliver to our customers. So, when Boone Power gets capital credits from WVPA, we can pass those on to our member-owners. 

This year, we are passing along a capital credit payment from WVPA for portions of 2010 and 2011. Members receiving capital credits this year will see a line item on their November billing statements called “Co-op Cash Back.”

For more information about capital credits, including a list of frequently asked questions, visit boonepower.com/capital-credits.