Capital Credits

Because MWEC is a cooperative, the revenue generated in excess of expenses each year is allocated to its member in the form of patronage.  The amount each member is allocated is based on the net margin (revenue less expenses) of the cooperative, and the amount of total electricity purchased by each member.  This allocation takes place once a year.  Each member is sent a capital credit statement showing the current capital credit balance and a total of all the years combined.  This statement shows your equity in MWEC.

Every year the MWEC Board of Directors reviews the overall financial condition of the Cooperative and determines its financial requirements.  There are times when the Cooperative has a greater amount of funds built up in reserve than it feels will be necessary.  In this case, the Board of Directors may authorize a "retirement" of capital credits in the form of cash payments to the member.


  • Capital credits are not a debt owed to you by the Cooperative.  They represent your net equity in the company.
  • Capital credits are used by the Cooperative to improve your service and build the system. Without capital credits, MWEC would have to borrow funds, thus increasing costs ultimately, your rates.
  • As a member of this cooperative, you enjoy the unique privilege of actually owning the company providing your electric service.

For more information, please contact us.