Capital Credits

At Mor-Gran-Sou Electric Cooperative, we believe in putting our members first and sharing in the success of our collective efforts. Capital credits represent one of the tangible ways we demonstrate this commitment. Unlike investor-owned utilities who provide electric service for a profit, Mor-Gran-Sou Electric is a member-owned organization that returns profits, called "margins" in the cooperative business, back to its members.

Capital credits represent a member's share of the cooperative's earnings, or "margins," which are allocated to members based on their usage of the cooperative's services. Essentially, when a cooperative has money left over after paying its expenses, those leftover funds, or margins, are allocated back to the members as capital credits. 

capital credits

Allocation vs. Retirement

Capital Credit

An allocation is made annually for each member, based upon the amount of electricity you purchased the previous year. An allocation is your share of the amount of net margins Mor-Gran-Sou Electric sets aside into a separate account to be used as operating capital for reliability improvements and maintenance over a period of years.

A retirement is the amount you receive back as a capital credit refund. It is a percentage of your total capital credit balance. The amount retired is decided annually by the board of directors based on the financial needs of the cooperative.

How it works

When you move into a home, or establish a business in Mor-Gran-Sou Electric’s service territory, you become a member of the cooperative.

A capital credit account is established in your name and Mor-Gran-Sou Electric uses this to record your investment in the cooperative.

Each year, any funds remaining after expenses have been paid are allocated to your capital credit account. Notice of this allocation appears on your bill.

Capital credits are based on the amount of electricity you use, so your allocation may vary each year. Businesses typically build up more capital credits than homeowners.

Each year, the board evaluates the financial condition of the co-op to determine if we can retire capital credits. Capital credits may not be retired every year.