Capital Credits

What Are Capital Credits?

Ideally at CFEC, rates and budgets are set perfectly so that we spend the exact amount collected during the year. However, given weather and expense variations, it is nearly impossible to predict. Therefore, at times there can be a margin generated.

At year end, if there is a margin, the Board of Trustees has the authority to allocate the margin to members in the form of capital credits and distribute them at a future date. For example, in 2018 CFEC allocated the margin from 2018 to our 2018 members and we distributed 1991 capital credits to those who were members in 1991. Members were paid their portion of the margin based on their usage in that year.