Capital Credits Money Back In Your Pocket

A message from manager of accounting and finance Evan Rauch

On behalf of Butler Rural Electric Cooperative’s board of trustees, I’m happy to announce we’re retiring $1.7 million in capital credits to current and former members this year.

What sets cooperative utilities apart is their unique business model. Capital credits serve as a benefit to members of the co-op and represent your stake and investment in the cooperative. These credits are important to funding crucial elements such as poles, wires, transformers, and other essential infrastructure, all of which contribute to the long-term strength and reliability of the cooperative.

Retaining capital credits within the cooperative is a commitment to ensuring our financial strength. By leveraging these credits, we finance capital improvements and projects that are important to sustaining your electric system. Additionally, retaining capital credits instead of borrowing money helps lessen the costs associated with electricity, ultimately benefiting all members.

Annually, Butler Rural Electric Cooperative’s board of trustees evaluates the cooperative’s financial health to determine the feasibility of retiring capital credits. The board of trustees approves the comprehensive retirement plan, ensuring both current and former members receive their capital credits retirements over time — to put money back in the pockets of you, the owners of our cooperative. 

Capital credits applied to bill Nov. 4
Beginning this year, capital credits will be automatically applied as a credit to your electric bill. Under this new process, members will no longer have to wait for a capital credits check to arrive in the mail. Instead, capital credits will automatically appear as a credit on your electric bill.

This change does not alter the amount of capital credits you receive. It simply changes how you receive them. You will continue to see the value of your cooperative membership returned to you — now in a way that is automatic and convenient.

Through our history, Butler Rural Electric Cooperative has retired more than $69 million in capital credits through our general retirement process, underscoring our commitment to our not-for-profit nature.

Capital credits are one of the many benefits of co-op membership. Giving back to our local members instead of outside parties is one of the many aspects that set cooperatives apart from other types of businesses.