Your investment in the cooperative is returned to you
As a not-for-profit cooperative utility, when MVEC has money left after paying expenses, we return it to you, our member-owners, in the form of Capital Credits. These credits are your share of the cooperative’s margins, based on the amount of electricity you purchased in previous years. Allocations are made annually, and the Board of Directors determines when credits are returned.
As a current or former MVEC member, you share in MVEC financial results. Cooperatives are not-for-profit
organizations, so any revenue received beyond the expenses involved in providing safe and reliable service (called margins) is credited back to you in the form of a Capital Credit, based on the amount of electricity you used during that particular year.
In March 2025, the Board approved a distribution of approximately $1.78 million. Since 1959, MVEC has returned roughly $34 million to member-owners.
How do Capital Credits work?
- Money comes in (operating revenues) each month when you pay your electric bill. In addition to covering the cost of the electricity you use, your payment contributes to MVEC’s day-to-day operating costs.
- That money is then invested in operating expenses such as the equipment and manpower needed to meet the current and growing demand for electricity, improve and maintain the distribution system, and minimize the money that MVEC would need to borrow. Member-owners can think of it as their equity investment in the cooperative.
- After each fiscal year, any revenue received in excess of expenses (called margins) is allocated back to the membership in the form of a Capital Credit based on the amount of electricity purchased during that year. MVEC maintains Capital Credit accounts for each member-owner until the credits are retired (paid) in full.
- MVEC’s Board of Directors reviews the co-op’s finances, and, when financial conditions permit, the Board may authorize a Capital Credit retirement (payment). Eligible active member-owners will receive a credit on their bill. Eligible former member-owners will receive a mailed check.
What’s the difference between allocations and retirements?
The longer you’ve been a member, the more allocations you have accumulated.
If Capital Credits are retired, the Board will authorize the retirement of a particular year or a percentage of a year. Refunds will be issued to those members who had service during the year being retired. Using a first-in, first-out method, we’re currently returning Capital Credits from about 25 years ago.
Allocations
Who is eligible? All member-owners who are active during the allocation year.
Excess margins are divided proportionally based on the member-owners’ energy purchases for the allocation year and added to the member’s Capital Credit account.
Allocations are processed once a year, typically in the spring or summer.
Retirements
Who is eligible? All active or former Members who have remaining Capital Credits for the years being retired.
Based on the Cooperative’s financial condition, MVEC’s Board of Directors determines whether Capital Credits (previously allocated) can be retired (paid).
At the discretion of the Board, retirements are distributed annually, usually in the month of March.
Payment Process
Current members receive Capital Credits as a credit on their electric bill. Former members receive their Capital Credits by check. If you were eligible for a payment but haven’t received yours, please email MVEC your complete forwarding address and phone number with “Capital Credits” in the subject line. For security, your address will only be updated after MVEC confirms the change by phone.
Senior Citizens and Estates
Each year, the Board of Directors may authorize an early-retirement option for seniors (age 70 and older) and estate accounts at a discounted rate. Approved checks are issued within 30–45 days.
Unclaimed Capital Credits
If you’ve moved out of MVEC’s service area without providing a current mailing address, we may not be able to reach you. Use this form to update your information and request your Unclaimed Capital Credits.
FAQs
As a not-for-profit cooperative utility, when MVEC has money left after paying expenses, we return it to you, our member-owners, in the form of Capital Credits. Allocations are made annually and retired according to MVEC’s bylaws.
MVEC refunds Capital credits on a first-in, first-out basis to members who had electric service from MVEC during the years being retired.
Yes. Members age 70 or older may apply to receive their Capital Credits at a discounted amount.
Yes. Call our Capital Credits Department at (952) 492-2313 or (800) 282-6832.
Please consult a tax professional for specific guidance.