This month you'll notice special number on the front of your bill. This is your capital credit allocation. If you don’t already know, capital credits are one of the benefits of being a Trico Member.
When you signed up to receive electric service from Trico, you became a member of an electric cooperative. While investor-owned utilities return a portion of any profits back to their investors, electric cooperatives allocate excess revenue to Members as “capital credits.”
Electric co-ops operate at cost, collecting enough money to pay operating costs, make payments on any loans and provide for emergencies. At the end of the year, we subtract operating expenses from the operating revenue collected during the year. When Trico has money left over, it’s allocated back to you and other Members as capital credits. The amount of each allocation and retirement is based on how much an individual member pays Trico for electric service.
Each year, the Trico Board of Directors makes a decision on whether to retire capital credits based on the financial health of Trico. During some years, we may experience high growth in the number of new accounts, or severe storms may result in the need to spend additional funds to repair lines. These and other events might increase costs, preventing Trico from retiring capital credits.
How are capital credits determined?
Your share for the preceding year is calculated based on the amount of kilowatt-hours you used and paid for. This share is called ‘capital credits.’ Every summer, your capital credit allocation is noted on your monthly electric bill.
If you move or no longer have service, Trico must have your current address in order to send you capital credit notices and refunds in the future.
What happens when capital credit checks are not cashed?
All unclaimed capital credit funds are given to the Trico Foundation, which provides scholarships to Trico Members and their families living in Trico’s service area.
Have more questions?