This year, the board of directors approved the retirement of $6.1 million in capital credits to be paid back to members. Dakota Electric is returning the remaining 1995, 100% of the 1996-97 and 80% of the 1998 allocation. Members who purchased electricity in 1995-98 will be mailed a check this month. Watch for your check arriving soon!
What are capital credits?
Capital credits reflect each member’s ownership in Dakota Electric. As owners, all members of Dakota Electric share in the cooperative’s margins. Margins represent the difference between total revenue received and operating expenses for each year.
How are year-end margins allocated?
At the end of the year, using audited financial statements, Dakota Electric determines whether there are any margins. We allocate the margins to our members as capital credits based on their billed electricity during the year.
When do I get my capital credits?
Even though the cooperative allocates 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 23-year rotation — with a goal to achieve a 15-year rotation by 2025 — retiring the oldest credits first.
Dakota Electric sends out Circuits monthly newsletter to our members each month. Inside, members can find valuable money- and energy-saving tips, special event details, news about Dakota Electric and electric utility industry information that may impact electric bills.
Dakota Electric Association
4300 220th Street West
Farmington, Minnesota 55024