When you belong to an electric cooperative, you’re not a customer, you are a member- and a co-op owner. Our members decide who governs the co-op, and they receive a share of the annual profits and belong to an organization that’s deeply involved in their communities.
CCECA is a nonprofit distribution cooperative. This type of co-op buys electricity from wholesale providers, arranges for its transmission, and distributes the power to members through the co-op’s power lines.
One of the best parts of being a member of CCECA is that you share in our economic well-being. Because CCECA is a non-profit enterprise, if any revenue remains after yearly costs have been subtracted, it is ultimately returned to our members through the capital credit system. Remaining revenue is called the margin. It is important to note that a margin may not occur every year.
The Capital credit system ensures that if a margin occurs, it will be redistributed to members, based on the dollar value of their electrical usage billed for that year. A separate record for capital credits is maintained for each member. When a margin occurs, the amount of the margin earned by each member is calculated and allocated to the member’s capital credit record for that fiscal year. For example, if CCECA experiences a margin of one percent of the total revenue for that year, each member will have $1.00 for each $100.00 they paid for electricity that year allocated to their capital credit account.
When a margin occurs, members will be notified of the formula and can calculate their capital credits. CCECA remains in control of the funds and is permitted to use them as equity capital until financial conditions permit a payout. The directors determine if funds are available to release. Whereupon, active members will be issued a credit on one active account, and retired member accounts will be issued a check for your prorated portion of capital credits being retired.
In 2018, the Board of Directors reviewed CCECA’s capital credit retirements and elected to adopt a hybrid system of first-in-first-out (FIFO) and last-in-first-out (LIFO) retirement cycle. This approach to capital credits allows a percentage of current members, whether newer and/or older to get money back at a faster rate as well as money being returned to retired members.
For any questions or comments please contact Haley Skinner at email@example.com or 903-683-2248 ext. 3051.
Members have a say in who leads CCECA, by electing the people who sit on the seven-member Board of Directors. Those representatives are neighbors from your community and, like you, are directly impacted by the governance of CCECA.
Learn more about the Board of Directors >>
CCECA’S annual meeting each October provides an opportunity for our members to gather for a festive event, where they elect directors, hear a state of the co-op report, socialize and qualify for prize drawings. The annual meeting is held on the third Tuesday of every October.