Dakota Electric Association’s Board of Directors recently announced the 2021 capital credit payout to its members of a projected $6.1 million. Those who received power from Dakota Electric in 1995 through 1998 have been sent checks.
Capital credits reflect each member’s ownership in the cooperative. Any excess revenue beyond expenses that is collected each year is accrued to each member’s account based on their total energy usage that year. The capital credits are not paid out immediately but help reduce borrowing, saving money on interest rates and helping to keep electric rates low.
These capital credits (sort of like dividends from a for-profit company) are then paid out to the membership, and more than 54,000 checks were mailed Dec. 15. Dakota Electric’s board has set the goal to achieve a 15-year rotation on the payout of capital credits by 2025. Currently, the payout is on a 23-year rotation.
“This highlights just one of the tangible benefits of membership in a not-for-profit electric cooperative,” Board Chair Jerry Pittman said, “and we are happy to return cash at this time of year.”