One of the benefits of being a member of Dakota Electric means you get a portion of the cooperative’s margins. When Dakota Electric’s annual revenue exceeds expenses, it returns the margins — or capital credits — to members based on their annual electric bill.
While we 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 of directors approves the payment of capital credits annually. Currently, our capital credit program is on a 25-year rotation, retiring the oldest credits first.
During the cooperative’s 2019 strategic planning review, the board of directors decided to accelerate the 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.
This year, the board of directors approved retiring $4.4 million in capital credits to be paid back to members. Dakota Electric is retiring 100% of the allocation from 1993 and 1994, and 15% of 1995.
Members who purchased electricity in 1993-95, and who are receiving $5 or more in capital credits, will be mailed a check this month. Watch for your check arriving soon.
To learn more about capital credits, email [email protected]ectric.com or call 651-463-6212.