Capital Credits (margins) are to a Cooperative what profits are to a private business. Because we are a member-owned entity, Cimarron Electric strives to operate all segments of operation at cost. As a result, any margins (profits) are returned to you, the co-op member. Your share of these margins is called Capital Credits.
At the end of the year, net margins are allocated to each member in proportion to the member’s Cooperative purchases during the year. The Board of Trustees decides when to retire Capital Credits based on the Cooperative’s financial condition.
In the meantime, Cimarron Electric utilizes the money as working capital for operating and reinvesting in the Cooperative until a determination is made.
We are pleased to announce that we are returning capital credits for members from 1996-1997. This year we are distributing $955k in capital credits back to members.