How Do Capital Credits Work?
Capital credits are monies retained from rates and other revenue streams that Mille Lacs Energy Cooperative (MLEC) accumulates in excess of the actual cost of providing electric service. These “margins” are retained for a period of time and used to offset capital costs. Before these margins are used, they are allocated and credited to the Members in good standing for that operating year based on their contribution.
Eventually, these funds are returned to MLEC members. It is the goal of your Board to return these funds on a 20-year cycle. Even if you move from the Cooperative’s system, these funds remain in your name. It is important for you to keep us informed of any address changes so refunds can be delivered properly.
“Only my local electric cooperative makes every customer an owner of the business. Unlike other electric utilities, my co-op exists to make sure my needs are met, not just to make a profit. As a member-owner, I share in the profits in the form of capital credits.”
2. Each year, after expenses are paid, MLEC calculates margins (leftover funds).
3. MLEC uses the margins to pay down debt, invest in facilities and improvement projects, and allocate to members as capital credits based on their usage of electricity.
4. MLEC retires (returns) capital credits to members.
We Need Your Help!
If you know anyone on the Unclaimed Capital Credits List, please email our Capital Credits Team or call (218) 429-0431 or (866) 628-9417.
Unclaimed Capital Credits List (PDF)Search the Unclaimed Capital Credits List
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