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Capital Credits

Capital credits are the profits – called margins by cooperatives- that are left over from revenues after all operating expenses are deducted.  Margins, along with borrowed funds are used to finance capital improvements, such as electrical lines, poles, transformers, substations, etc.

Capital credits are allocated annually to each member.  These credits are based on the amount and cost of electricity each member purchased during the year.  To determine your individual capital credit allocation, the margin percentage is applied to the amount you paid for electric service for the year.  Once a year Moreau-Grand will send you a notice informing you of the amount allocated to you in capital credits.  This capital credit allocation notice is not a bill.  It is a statement of your equity, or ownership, in your cooperative. 

Moreau-Grand Electric’s board of directors, elected by members, decides when the co-op’s equity is sufficient to return the capital credits as cash to members.  At the current time, no retirement has been authorized, so the notice of capital credit allocation is simply to inform you of your capital credit balance. 

It is important to keep the cooperative informed of your current address so that we can send your refund when the board decides to authorize a general retirement to the cooperative’s membership.

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