The Power of Membership: 2025 Capital Credit Retirement

Members of Beltrami Electric Cooperative are receiving something more than reliable energy this season. They are seeing a direct return on their investment through the distribution of capital credit refunds. This annual tradition highlights one of the most important benefits of cooperative membership and reinforces the value of being part of a member-owned utility.

• Active members can look at their billing statement either at the end of November or the beginning of December, depending on billing cycles. Former members will be sent a check in the mail. 

At the heart of this system is a simple idea. When you purchase electricity from a not-for-profit cooperative, you are not just a customer. You are an owner. Each bill you pay supports the infrastructure that keeps electricity flowing to homes, farms, and businesses across our region. Once the cooperative’s operating expenses are covered, any remaining margins are returned to members in the form of capital credits.

Understanding how capital credits work helps explain why this program is so meaningful. Capital credits are earned based on the amount of electricity each member purchases throughout the year. The more energy you use, the larger your share of the margins. These funds represent your portion of the cooperative’s financial success, and they reflect the shared responsibility members have in supporting essential system improvements and routine maintenance.

Capital credits move through two important stages before refunds are issued.

• The first stage is the annual allocation. During this step, the cooperative determines each member’s share of the net margins and records it in the member’s capital credit account. This allocation is held by the cooperative for a period of years and used as operating capital to help maintain and improve the electric system, keeping service safe, dependable, and affordable.
• The second stage is the retirement of those credits. A retirement occurs when a portion of previously allocated credits is paid back to members. Each year, the board of directors reviews the cooperative’s financial health and determines how much can be returned. Once approved, those funds are issued to members as capital credit refunds.

Receiving a capital credit refund is a tangible reminder of what sets electric cooperatives apart. It is a reflection of shared ownership, shared stewardship, and shared success. Members are not investing in a distant corporation. They are investing in an organization that serves their homes, their neighbors, and their community.

The power of membership extends well beyond the meter. It strengthens the cooperative’s ability to plan for the future, invest in infrastructure, and support the people and places that depend on reliable electricity. Capital credits are one of the many ways that being a member in a cooperative pays off.

Your cooperative is proud to return these funds to the members who make our mission possible. Thank you for your continued trust and support.