At the September 2023 meeting, the Cape Hatteras Electric Cooperative (CHEC) Board of Directors authorized the return of $1,457,145 for its annual capital credit retirement.
Capital Credits represent each member’s ownership or “equity” in the Cooperative. Patronage Capital, the sum of that “equity,” can be likened to the retained earnings of a for-profit or investor-owned utility. Capital Credits are similar to the dividends paid to the for-profit entity’s stockholders. Each member of a not-for-profit electric cooperative has a capital credit account that tracks their ownership in the Cooperative. The patronage capital allocation factor per $100 of electricity usage for 2022 was $16.28.
The refund amount approved equals 50% of the Cooperative’s 2022 margins and will retire the patronage balances for members with services in 1997 and 2022.
Checks were mailed to CHEC members in November for amounts of $30.00 or more. Any amount less than $30.00 was issued as a credit to the member’s account.
