Electric cooperatives distribute margins back to their members on an annual basis. This process is referred to as allocations.
Capital Credits are accumulated through the allocation process based on the electrical usage for that current year. They remain on the customer’s account until time of death. When a member or member’s spouse dies, the heirs can submit a written request to retire the member’s capital credits at a discounted rate. Half is paid when one spouse dies and the remainder is paid when the second spouse passes.