For Meeker Energy members, capital credits are more than a financial benefit. They’re a reminder that the cooperative they rely on every day is also one they own.
For most of the year, your electric bill looks pretty straightforward: electricity used, charges owed and a due date. But each December, many Meeker Energy members see something different on their statement, a credit that puts money back in their pockets.
It’s called a capital credit retirement, and it’s one of the most tangible benefits of belonging to an electric cooperative.
For Kari Miller, Meeker Energy’s Chief Financial Officer, seeing those dollars returned to members is one of the most rewarding parts of her work.
“One of the best parts of being a cooperative is that we’re able to return money to the members we serve,” Miller shared. “It’s rewarding to see our financial success benefit our members directly.”
That benefit is rooted in an important distinction: Meeker Energy isn’t owned by outside investors. It’s owned by the people and businesses it serves.
Where Capital Credits Begin
Every time a member pays their electric bill, those dollars support the electricity and services their home, farm or business depends on. That includes purchasing power, maintaining equipment, responding to outages and improving infrastructure.
As a not-for-profit cooperative, Meeker Energy focuses on serving members rather than generating profits for shareholders.
At the end of each year, revenue remaining after expenses is known as margins. Those margins are allocated back to members as capital credits, based on how much electricity each member purchased during that year.
But members don’t receive a payment right away.
Instead, the Cooperative retains those funds for a period of time, putting them to work maintaining and improving the electric system. “The funds are used to support operations, maintain infrastructure, and invest in our electric system until the Board determines they can be returned to members,” Miller explained.
Rather than relying entirely on borrowed money, Meeker Energy can use member capital to help strengthen the system. In many ways, those dollars serve members twice: first by supporting reliable electric service and later when capital credits are returned.
From Member Investment to Member Benefit
Each year, Meeker Energy’s Board of Directors reviews the Cooperative’s financial position and determines whether capital credits can be retired while maintaining the financial strength needed for the future.
This year, the Board has approved the retirement of $1.1 million in capital credits, bringing the Cooperative’s cumulative total returned to members to more than $25.7 million.
The retirement includes capital credits allocated during 1997, along with applicable credits from one of Meeker Energy’s wholesale power suppliers, Great River Energy.
Eligible current members will see a credit on their December electric bill. Former members who qualify will receive a check once their accumulated retirement amount meets the $25 minimum.
While the amount varies, the meaning behind each retirement is the same. “Capital credits are a great reminder that our members aren’t just customers — they’re owners of the Cooperative, and they share in its success,” Miller said.
Instead of distributing margins to outside investors, Meeker Energy returns value to the people and communities that helped build and sustain the Cooperative.
A Benefit That Comes Full Circle
Since its beginning, Meeker Energy has returned millions of dollars in capital credits to members, demonstrating the lasting value of cooperative ownership.
And while the annual retirement may be the most visible part of that process, capital credits represent more than a credit on an electric bill.
They’re part of a continuous cycle of investment and return, connecting today’s members to the generations who helped build Meeker Energy and those who will depend on it in the future.
For Miller, that’s what makes capital credits worth understanding. “It’s a way for us to balance investing in reliable service today while returning value to our members over time.”
At Meeker Energy, cooperative ownership isn’t simply a principle. It’s reflected in how the Cooperative operates, invests in the future and shares its financial success.
Because at Meeker Energy, you’re a member and an owner. And capital credits are one of the benefits of belonging.