Kenergy is continuing its long-standing practice of retiring capital credits to its members. In August, Kenergy will return $2.7 million to its membership. The credit amount represents net margins allocated in years 1990 and 1991.
So, what is a capital credit retirement? Electric cooperatives aren’t like other utilities. We operate on a not-for-profit basis, which means we operate at cost. This means we collect only enough revenue to run and expand business without the need to generate profits for distant shareholders.
You, as a member, own a portion of Kenergy. When we have money left over, it’s returned to you and other members as a capital credit retirement.
This year, we are returning margins earned in both 1990 (100%) and 1991 (85%). Your share is figured by how much electricity you used during that time frame in proportion to the margins allocated. If you were not a member during that 1990/1991 time frame, you will not receive a credit on your bill.
We are proud to say this is Kenergy’s eighth consecutive capital credit retirement. Since 2012, the cooperative has returned more than $23 million to our members and former members.
Cooperatives are businesses that pay you back. Those are tough to find these days. And it’s a great reason to be a member of an electric cooperative.
After you receive your August bill statement, feel free to call us at 1.800.844.4832 if you have questions.