Capital Credits

Capital Credits: An Overview

So what are these things called capital credits?

At a coop you are more than just a customer; you are a member. In fact, you become part owner of your local Co-op. As part of that relationship, you will periodically receive money back in the form of capital credit refunds.

Because WEC is a cooperative, owned by its members, it does not technically earn profits. Instead, any revenues over and above the cost of doing business are considered "margins." These margins represent a loan by the membership and it is used by the cooperative as operating capital. This capital allows WEC to finance operations and construction, with the intent that this money will be repaid in later years when the cooperative is financially able to do so. The return of money to members is what the capital credit process is all about.

♦ Summary

WEC tracks how much electricity you buy and how much money you pay for it throughout the year.
At the end of the year, we complete financial matters and determine whether there are excess revenues called “margins”.
WEC allocates “margins” to members as capital credits based upon how much they pay for their use of electricity during the year.
When the co-op’s financial condition permits, the Board of Directors decides to retire or pay capital credits.
WEC notifies you of how and when you’ll receive your capital credits retirements.

2023 Capital Credits Undeliverable Accounts List - searchable PDF

Capital Credits Frequently Asked Questions

Not necessarily. Each year WEC Board of Directors makes a decision on whether to retire some capital credits based on the financial health of the cooperative. When considering a retirement, the board analyzes the financial health of the co-op and will authorize a retirement if WEC can afford it. During some years the coop may experience high construction and power costs or unanticipated expenses such as severe storms which may result in the need to spend additional funds to repair lines. These and other events might increase costs and decrease member equity causing the board not to retire capital credits. All capital credits that are allocated to members are maintained until such time that the board retires them.

Electric utilities are capital intensive businesses requiring large investments in equipment. Like all businesses, WEC must maintain a balance between debt and equity to ensure financial stability. During periods of fast growth a large amount of money or equity is needed to build the wires and poles and buy power necessary to serve members. In order to fund this growth WEC has to borrow money from banks, reinvest member capital, or in some cases do both. By reinvesting your dollars into WEC, we are able to keep rates competitive by reducing the funds that must be borrowed from other sources.

2026 Equity Distribution Plan

Click here to view 2026 Equity Distribution Plan as a PDF

Target distribution amount of $265,760 in the year 2026
Method of retirement: first-in-first-out (FIFO)
Year and amount to be retired
- $265,760 of the patronage capital allocated to Electric Members in 2001, fully retiring 2001 and keeping to a 25-year distribution schedule..
Current electric members who are entitled to capital credits refunds will receive their refund as a credit on their bill, regardless of amount.
Fifty $50.00 is the minimum check limit.
Former members will be given the opportunity to contribute their 2026 capital credit refund to the Community Fund administered by Washington Electric Cooperative
All individual retirements will be reduced by any uncollectible or delinquent amount(s) owed to the Cooperative, as permitted by the Bylaws.
Early retirements will be made to the estates of deceased members, not to exceed $50,000. This is an increase from the previous years of $25,000. This is a benefit to both WEC and the heirs of the estate. The heirs are able to close out the capital credit account and WEC is able to retain the discounted portion of the years that are retired early.
A Service charge fee of $25.00 will be applied to all accounts with an unclaimed amount that are part of the proposed retirement years.

Board Approved May 27, 2026