Were you a member of OPALCO in 1988? If so, you may be among the 4,192 people who will get a check from OPALCO later this month as capital credits are distributed. This is one of the distinctions that make an electric co-op unique: it is truly member owned and operated and we each have a “stake” in the utility. Once a year, as OPALCO’s finances permit, the Co-op returns capital credits to its members on a 25-year cycle. The decision is made annually by the Board after a thorough examination of the Co-op’s financial position.
What are capital credits? Because OPALCO is a not-for-profit cooperative, it does not retain profits. Instead, any revenues over and above the cost of doing business are considered “margins.” These margins are allocated to members as capital credits at the end of the year. We all receive a statement in our bill each summer that indicates the amount of capital credits allocated for the previous year. This member capital allows our co-op to finance operations and some construction projects, with the intent that this capital will be repaid to us in later years. Continue Reading