DMEA Retires $3.3 Million in Capital Credits to Members
Delta-Montrose Electric Association (DMEA) is distributing $3.3 million in retired capital credits this month to current and former cooperative members. DMEA’s Board of Directors approved the retirement after evaluating the co-op’s strong financial position.
“Capital credits are one of the most meaningful benefits of cooperative membership,” said Jack Johnston, Chief Executive Officer of DMEA. “This $3.3 million retirement reflects our continued financial strength and our commitment to operating responsibly so we can return value directly to our members. It’s a tangible example of the cooperative difference at work.”
Active and former DMEA members who purchased electricity in 1996 will receive their capital credit retirement this month. Retirements of $50 or less will be applied as a bill credit, and checks will be mailed to active and former members receiving more than $50.
How does the capital credit process work?
DMEA operates as a not-for-profit, member-owned electric cooperative. Here’s how capital credits work:
- Throughout the year, DMEA tracks how much electricity members purchase and how much revenue is collected.
- At year’s end, DMEA completes a financial analysis to determine whether there are excess revenues, known as operating margins.
- Those operating margins are allocated back to members based on their electricity purchases for that year.
- When DMEA’s financial condition permits, the Board of Directors votes to retire (pay back) those previously allocated capital credits.
Current cooperative members receiving a capital credit can expect to see the credit applied to their DMEA bill this month, with checks arriving within the next two weeks for qualifying amounts. DMEA reminds members who move outside of the service territory to provide updated forwarding addresses to ensure they receive future capital credit retirements.
For more information about capital credits, visit dmea.com/capital-credits.
