Capital credits are the assignment, to Wasco Electric Cooperative members, of each account’s portion of the margins for a year. Since Wasco Electric Cooperative is a non-profit organization, all profit or margins are assigned to you, the member-owners.
An example of this is as follows:
Revenue: $1,000,000 – Expenses: $900,000 = Profit/Margins: $100,000
For the sake of keeping it simple, imagine that you paid $100,000 for energy that year or 10% of the total revenue came from you. At the end of the year, 10% of the margins [$10,000] will be assigned to you.
This allocation comes to you in a letter each year. Many people confuse it with a power bill or credit. It cannot be used as credit on your next bill.