Capital Credits (margins) are to a cooperative what profits are to a private business. Because we are a member-owned cooperative, IEC strives to operate all segments of operation at cost. As a result, any margins (profits) are returned to you the member. Your share of these margins is called Capital Credits.
How are Capital Credits Allocated?
At the end of the year, net margins are allocated for the year being paid to each member in proportion to the member’s cooperative purchases during the year. The Board of Trustees decides when to retire Capital Credits based on the cooperative’s financial condition.