Capital Credit Allocation
Gascosage Electric is an electric cooperative. We are locally owned and operated by the people we serve.
That means no out-of-town stockholders control the way the company is run. Every member-owner has a vote and voice concerning cooperative matters.
We are fortunate to have nine cooperative members just like you serving on our Board of Directors, ensuring your voices are heard.
Another unique thing about being a cooperative member is that each time you pay your bill, not only are you paying for the electricity that you use, but you are also contributing capital to help your cooperative continue to operate. This retained capital is known as capital credits or patronage capital.
Patronage capital is the money that remains after the cooperative’s expenses are met. At the end of each year’s operation, the remaining money is set aside as patronage capital.
This money is allocated to members’ accounts annually based on the amount of electricity that they have purchased in relation to the amount of electricity purchased by all Gascosage Electric members.
By using patronage capital to build new lines and update the system, it reduces the amount of money we have to borrow in order to serve you in the best possible manner.
The decision to refund capital credits is made by the Board of Directors and is done when they feel payment of patronage capital will not endanger the financial position of the cooperative.
Even if you are no longer a member of Gascosage Electric when the payment of capital credits is approved, you are still entitled to receive your share for the years you contributed. If you move, please notify us of your change of address so that we may forward your payments when checks are issued.