Capital Credits

McDonough Power operates as a not-for-profit business, owned by the member-consumers we serve. When you pay your 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 (excess of income over expenses), the margins are allocated through a capital credits system according to each member’s usage. You will receive an allocation notice each year that you have service with us.

Members are assigned an individual capital credit account, separate from their billing account. Capital credits are refunded periodically when the board determines that it will not jeopardize the financial condition of the cooperative. When capital credits are refunded, we will mail a check to you at the address we have on file. It is important that you keep your address up-to-date with us even if you move off our lines so that we can find you when a retirement is made.

If a former or current cooperative member has passed away, McDonough Power needs to be contacted by a relative or other legal representative so that the remaining funds in their capital credit account can be properly disbursed.