Dixie Power is a member-owned not for profit cooperative because we give back the profits to our members in the form of capital credits. We still pay all business taxes such as property taxes, sales taxes, and employer taxes – we just don’t pay income taxes because of the capital credits refunded to our members, hence the legal status of “non-profit.” Each year the company’s margin (revenues less expenses) is determined and then allocated proportionately to all members based on their individual revenue to the company (power bills they are billed). This allocation is then recorded in a separate capital credit account for each member and reflects the investment of each member into the plant facilities of the cooperative. As long as you are a member and the company has positive margins, you will receive a capital credit allocation. That allocation is turned into actual cash when the Board of Directors declares a capital credit refund. That is done close to the end of the year when the financial condition of the company is apparent. Refunds are done as a percentage of a member’s entire balance.
Allocation Notice: Notice of your credits recorded in a capital credit account.
Refund: Actual cash being refunded from your capital credit account.
Example of Capital Credit Allocation Notice:
CAPITAL CREDIT ALLOCATION NOTICE
|Total All Years:||$106.48|
The Board of Directors approves a percentage of the total balance to be refunded each year when the financial position of the company allows. Each year the total will change when adding the allocations and subtracting the refunds.
CAPITAL CREDITS RETIRED
Total To Date:
|Previous 4 Years|
COOPERATIVE CASH FLOW
Each month members make payments based on their energy usage to Dixie Power.
Each month Dixie Power has expenses including operations, maintenance, and wholesale power costs.
Each year after all of the expenses have been paid, any extra income collected from the members is allocated back to the members into their capital credit account. The capital credit accounts allow Dixie Power to use this money for self-financing for new infrastructure and other large expenses. This helps keep rates low for the members as Dixie Power does not have to pay interest charges on loans from other financial institutions.
Each year the board of directors makes a decision to refund a portion of the capital credit accounts back to the members. This comes as a credit on your December bill. If you are not a current Dixie Power member, keep your address updated with us and we will send you a check every time capital credits are refunded.