Board Authorizes Capital Credit Retirement Totaling $2,416,000
As a cooperative, we are operated on a not-for-profit basis. After all expenses are paid for the year, any money left over is allocated back to you as capital credits, in proportion to the amount of energy you used. Those allocations become member equity, or your share of ownership in the cooperative. The money is used to operate and build your cooperative, and then returned to you through a refund at a later date.
This year, the board of directors approved a general retirement of $2,416,000 in capital credits. This retirement is from two different sources. From Wolverine Power Cooperative, $1,091,000 is being retired based on the power supply portion of your energy bill covering the years 1989-1996).
The remaining $1,325,000 is from HomeWorks, the distribution side of your energy bill, with $121,000 from 1987, $572,000 from 1988, $366,000 from 1989, and $266,000 from 2014. The largest portion of the retirements goes to return the oldest capital credits on file, while still making sure our newest members see the tangible evidence of their cooperative membership.
The board also approved $220,000 to be set aside for estate retirements, to be paid at current net value on a first-come, first-served basis.