Capital Credits Payback Accelerated
As we look to the future and launch cutting-edge initiatives, Dakota Electric’s core values stay true — provide members with outstanding electric reliability and quality service at a competitive rate. These pillars guide our board of directors as they annually conduct reviews and update our strategic plan. Another value of being an electric cooperative member is receiving cash back over time based on the amount of electricity you purchase from Dakota Electric. We call these payments “capital credits.”
While Dakota Electric may allocate capital credits to members each year, the money is not paid out right away. Capital credits are reinvested to reduce borrowing and interest payments — keeping rates as low as possible. Dakota Electric’s board approves the payment of capital credits annually. Currently, our capital credit pay-back program is on a 27-year rotation, retiring the oldest credits first.
During the cooperative’s 2019 strategic planning review, your board decided to accelerate our capital credits pay-back program. They set a goal to achieve a 15-year rotation by 2025. To reach this goal, we will return approximately $22 million of capital credits over the next five years, or an estimated $4.4 million
per year. In 2020, Dakota Electric plans to return capital credits to members who purchased electricity during the years 1993, 1994 and 1995.
Capital credits reflect just one advantage of being a cooperative member — we share our profits with you because we do not have outside stockholders.
It is our pleasure to serve you. We look forward to another great year.
Dakota Electric’s President and CEO, Greg Miller, right, and Board Chair, Jerry Pittman, left.