As a not-for-profit electric cooperative, Trinity Valley Electric Cooperative does not earn profits. Instead, the cooperative allocates its annual operating margins—earnings in excess of the cost of doing business—to members in proportion to the amount of electricity purchased each year. As determined by the board of directors, any margins in excess of the needs of the cooperative are periodically distributed to the membership in the form of capital credits.
After reviewing the co-op’s financial condition this year, the TVEC board of directors approved the retirement of capital credits in the amount of $4 million. This distribution to more than 71,000 current and former members of TVEC represents the outstanding patronage capital from 1989, and 1 percent of all other allocated, but unretired capital credits.
Capital credits will be disbursed throughout December. Current members will be issued a bill credit on December bills, and former members will receive a check.
The retirement of capital credits is just one of many benefits of being a member of Trinity Valley Electric Cooperative.