A new, convenient way to receive capital credits

A message from your general manager Tom Wolfenbarger

Beginning this year, capital credits will be automatically applied as a credit to your electric bill. This change will make the process simpler while putting the value of your cooperative membership directly toward your electric bill.

What are capital credits?
As a member-owned cooperative, Butler Rural Electric operates differently from investor-owned utilities. Any margins generated by the cooperative are allocated to members in the form of capital credits. Unretired capital credits, or “equity” of the cooperative, serve a vital function — allowing the cooperative to operate economically and effectively while investing in the infrastructure necessary to meet the needs of members. Over time, capital credits are returned to members as the cooperative’s financial position allows.

Capital credits are one of the ways your cooperative puts money back in the hands of those we serve. They are a tangible reminder that you are more than a customer — you’re a member of Butler Rural Electric Cooperative.

This year, we will distribute $1.7 million in capital credits to current and former members. The average residential member will receive $150 in capital credits this year.

A simpler way to receive capital credits
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. If you prefer to receive a check, you still have that option.

What this means for you
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.

What’s changing
Previously: Members received capital credits as mailed checks, unless they chose to receive a bill credit.

Now: Members will see capital credits as automatic credits on their electric bills. If you prefer to receive a check, you still have that option.

When and how members will see capital credits
Capital credits will show as credits on bills generated Nov. 4. Future capital credits will continue to be paid as bill credits, unless you choose to receive a check.

Why we’re making this change
• Convenience: Automatic bill credit, no deposit required.
• Security: No risk of lost or stolen checks.
• Efficiency: Saves money on printing and postage.
• Effectiveness: Removes the possibility of mail issues and eliminates unclaimed or uncashed checks.