Every May is capital credit month for Wells Rural Electric Company owners and this year’s checks have been mailed. WREC is retiring a total of $690,370 in capital credits to owners this year and 22 accounts will receive checks of more than $1,000.
There are no customers at WREC, only owners. One of the biggest differences between cooperatives like WREC and investor-owned utilities is the returning of margins to owners in the form of capital credit checks. Each owner receives an allocation, their share of revenue in excess of expenses, according to their usage. Owners do not necessarily receive checks for specific allocations and the amounts cannot be applied to monthly bills. Each allocation is simply an amount that will be part of the capital credit checks when the total retired amount reaches $10 or more.
Many cooperatives around the country struggle to maintain enough financial stability to retire allocations back to their owners every year, but WREC’s Board of Directors has successfully managed to maintain an appropriate margin and faithfully return capital credit checks to owners for more than 30 straight years. Aside from receiving safe, reliable, cost-based electricity, capital credit checks are a big part of the cooperative difference owners enjoy by receiving their power from WREC.
Those receiving checks this year should get theirs in the mail by the end of May. If you do not receive a check, but believe that you should, please contact your local office. If you have questions about capital credits, please see the chart on page 29 of the May issue of Ruralite or visit www.wrec.coop.
