When you belong to a co-op, you’re not just a customer. You’re an owner. That means you have a financial stake in the cooperative.
Cherryland’s employees and board run a tight ship. As a not-for-profit utility, we aren’t driven by dollars, we’re driven by what’s best for you, our members. But, sometimes we collect more money than we need to run our business. When we have excess revenue, we return it right back to you as capital credits.
Everyone who buys, or has bought, electricity from Cherryland will receive capital credits for the years they were a member of the co-op.
Capital credits are returned in two steps. Every year, excess revenue is allocated to members as a capital credit allocation on their June bill. That allocation is not a bill credit, it is a notice of your share of the previous year’s revenues. Your board of directors reviews the co-op’s financials and if the co-op is in good financial shape, they vote to retire a portion of the capital credits that were allocated in previous years. Retired capital credits will appear on members’ bills as a bill credit in December.
If you are the estate executor for a member who holds capital credits in the co-op, please fill out the estate affidavit to access their account. Once the affidavit is received, we will close out the account and you will not need to wait on the full return of the money.
We use that money to build and maintain the distribution system that keeps your lights on. That capital is used to reduce your co-op’s long-term debt so our costs stay low and your rates stay affordable in the future. Eventually all of a member’s capital credits will be returned to them through board-approved capital credit retirements.
Well, first of all, we’ll miss you! And, we will continue to mail your retirements to you. That’s why it’s important that you inform us of any address changes.