As a not-for-profit electric cooperative, TVEC does not technically earn profits. Instead, the cooperative allocates its annual operating margins—earnings in excess of the cost of doing business—to members in proportion to the amount of electricity purchased each year. As determined by the Board of Directors, any margins in excess of the needs of the cooperative are periodically distributed to the membership in the form of capital credits.
After reviewing the co-op’s financial condition this year, the TVEC board of directors approved the retirement of capital credits in the amount of $3.1 million. This distribution to more than 72,000 current and former members of TVEC represents the outstanding patronage capital for the years 1988, and one percent of all other allocated, but unretired capital credits. Current members will be issued a bill credit in the month of December and former members will be mailed a check for this patronage.
The retirement of capital credits is just one of many benefits of being a member of Trinity Valley Electric Cooperative.