Cotton Electric Capital credits

You Deserve t e redlt.

It’s time for you to get the credit — capital credits, that is — for helping to build and sustain your generation and transmission electric coopera-tive. Recently, Western Farmers Electric Cooperative (WFEC) returned more than $2.5 million to Cotton Electric Cooperative. In turn, Cotton Electric is returning those funds to members like you across portions of eight counties served by the co-op.

You might not realize it, but when you signed up to receive electric ser-vice from Cotton Electric Cooperative, you became a member — and owner — of an electric utility, which is also a member/owner of WFEC, a generation and transmission cooperative.

The board of trustees and employees of Cotton Electric and WFEC work hard every day to keep your rates as low as possible. It’s nice to know that when there are profits, they go back to you in the form of capital credits. These capital credits are allocated based on how much you paid the co-op for electricity during a specified time period.

Enclosed is your capital credit check reflecting your ownership of the co-operative. More information regarding how capital credits work is print-ed on the back page of this notice.

If you have further questions about capital credits, please give us a call at 580-875-3351 or 1-800-522-3520.

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ELECTRIC CO-OP

A Touchstone Energy@Cooperative

Capital Credits Issued to Members

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ELECTRIC CO-OP

A Touchstone Energy@Cooperative

Unlike investor-owned utilities that generate profits on behalf of shareholders, not-for-profit electric cooperatives like Cotton Electric Cooperative and Western Farmers Electric Cooperative return any profits earned to their members in the form of capital credits.

Here’s an explanation of how capital credits work:

When a customer moves into or establishes a business in the Cotton Electric service territory, they become a member of the cooperative.

At the end of each year, the profits of Cotton Electric Cooperative and Western Farmers Electric Cooperative are allocated back to the members based on the percentage of electricity they used. Notice of this allocation was printed on your July billing statement and was also published in The Current.

Since each member’s portion of capital credits is based on the amount of electricity they use, the amount they are allocated varies from year to year.

Cotton Electric carefully tracks our members’ investments into the electric co-op in capital credit accounts.

Each year, the board of trustees at CEC and at WFEC evaluate the financial condition of the cooperatives to determine if we can ‘retire’ or refund capital credits. We may not retire capital credits every year.

When a board decides to retire capital credits, we calculate the amount we need to pay each member. Anyone who has been a member of the cooperative receives a capital credit check if their retirement amount is greater than $5.

If the retirement amount is more than $5, members receive a capital credit check in the mail. Retirements less than $5 are not issued a check and the allocation remains in the member’s capital credit account.

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OK SW News
OK SW NEWS - The Chronicle Newspaper http://www.okswnews.com - http://www.okswnews.weebly.com Bob Moore - 580-695-0331 - okswnews@okswnews.com