Because you are a member-owner of the Co-op, you share in the profits. Other businesses return profits to investors and stockholders, but as a cooperative, Rio Grande Electric Cooperative (RGEC) operates “at cost”. Any revenue left after expenses is returned to members.
Each year, RGEC goes through a capital credit allocation process, assigning margins to each member who received electric service the previous year. These margins are based on how much energy is used by each Co-op member. Once the allocation is complete, Co-op members are mailed a Capital Credit Allocation statement. This notice states the amount of credits the member has accumulated or the particular period.
Capital credit allocation statements for the year 2023 will be mailed about mid-July.
When capital credits are retired for a particular year, (RGEC is on a 30-year retirement cycle), the member will receive a check for the funds. Retirement of capital credits usually takes place in December.
For questions regarding capital credits, please call (800) 749-1509 and select option 5.