Clark Electric Cooperative

Clark Electric Cooperative is a not-for-profit service oriented electric utility that is owned by the members we serve. Since we operate on a not-for-profit basis, we technically do not earn profits. Instead, any revenues over and above the cost of doing business are considered "margins". These margins become part of the capital structure of the Cooperative and are used to help fund operating activities at the Cooperative, with the intent that this capital will be repaid to you in later years. Simply stated, capital credits reflect each member's ownership in the Cooperative. How Are Capital Credits Calculated? The amount of capital credits you earn in a given year is based upon the amount of capital you contribute to the Cooperative through payment of your monthly electric bills and the amount of operating margins realized by the Cooperative. The more electricity you buy, in relation to operating margins realized, the greater your share of capital credits will be. What's the Difference Between Allocated and Retired Capital Credits? Allocated capital credits appear as an entry on the permanent financial records of the Cooperative and reflect your equity or ownership in Clark Electric Cooperative. When capital credits are retired, a check is issued to you and your equity in the Cooperative is reduced. The Board of Directors determine under rules of general application, the method, basis, priority, and order of retirement for all capital credit retirements. Currently, checks are generally issued 20 years after the year in which the margins were earned.