What are Capital Credits?
Because Four County Electric Membership Corporation (EMC) is a cooperative, owned by its members, it does not technically earn profits.
- Instead, any revenues over and above the cost of doing business are considered ‘margins.”
- These margins represent an interest-free loan operating capital by the membership to the Cooperative
- The capital allows Four County EMC to finance operations and to a certain extent construction, with the intent that this capital will be repaid in later years
Questions?
- Download our Frequently Asked Capital Credit Questions (PDF)
How Capital Credits Work
At the end of each business year, any funds remaining after all expenses have been paid are referred to as capital credits
These funds are then allocated to each member’s capital credit account on the basis of how much each member paid the cooperative for electricity during the year