Annually, NNEC’s Board of Directors make an independent decision on the financial condition of the cooperative. When the cooperative is strong enough financially and the member equity level is high enough, the Board determines the amount and percentage of the years to be refunded. Prior to refunding capital credits, NNEC uses member equity in place of commercial loans to help construct and maintain the Cooperative’s physical plant (poles, wires, transformers, etc.).
Capital credits are somewhat similar to the dividends paid to shareholders of investor-owned utilities except the cooperative’s “shareholders” are also the members that it serves and the “dividends” (capital credits) are distributed to NNEC’s member-owners. The process of member capital credits fulfills the third cooperative principle, Member Economic Participation.
NOTE: Capital credits are reserved for each member even if they move out of NNEC’s service area or deceased. NNEC will make a diligent effort to send a check by mail. Members are asked to keep NNEC informed of forwarding addresses.
View Unclaimed Capital Credits: