You’re more than a consumer – you’re an owner of Butler Rural Electric Cooperative. Capital credits represent this ownership and are one of the most unique and rewarding benefits you enjoy as a member. This year, Butler Rural Electric Cooperative will distribute over $2 million in capital credits to current and former members.

Unlike investor-owned utilities that maximize profits to pay shareholders, your not-for-profit cooperative provides electricity at cost. At the end of the year, we return excess funds to members after all expenses have been covered.

What’s the difference between allocated and retired capital credits?
Allocated capital credits appear as an entry on the permanent financial records and reflect your equity, or ownership, in Butler Rural Electric Cooperative. Every year, the cooperative notifies members of the amount added to your capital credits account through a printed notice with the bill you receive in March. Retired capital credits are equity that is returned to members in the form of checks or bill credits.

How are capital credits calculated?
The capital credits amount you receive is based on the amount you paid for electric service during the years considered for capital credits retirement.

When will I receive a capital credits check?
When capital credits are retired, a check or bill credit is issued to you. This year, Butler Rural Electric Cooperative’s Board of Trustees approved the retirement of capital credits from 2007 and 2023. The unretired capital credits, or “equity” of the cooperative, serves a vital function – allowing the cooperative to operate economically and effectively while investing in the infrastructure necessary to meet the needs of our members.

Will I receive capital credits checks every year?
The board of trustees must authorize a retirement before you receive a check. The board must consider the financial stability of the cooperative, the need for cash, and the availability of loan funds.