Capital Credits

Capital Credits

Capital Credits are your share of ownership in Sierra Electric and one of your benefits of membership,  As a not-for-profit business, Sierra Electric exists to make sure your needs are met, not to make a profit.  When you pay your energy bill each month, you are accumulating equity in your cooperative through capital credits allocation.  Margins in excess of the cost to serve members are utilized as operating capital.  When the cooperative realizes a positive margin above and beyond operating expenses, the margins are allocated through a capital credits system according to each member’s usage.  Capital Credits are refunded (retired) periodically when the Board of Trustees determines that it will not jeopardize the financial condition of the cooperative.  For more information, please refer to Article IX of your copy of Sierra Electric Bylaws or feel free to contact us as we would be happy to answer any questions you may have.