Capital Credits
What are "capital credits?" How do they benefit me? These are two questions frequently asked by new members of H-D Electric. A cooperative does not have profits, it has "margins" (revenues less expenses equal margins). Since you are one of the owners of the cooperative, part of that margin is yours! The members' share of margins is called capital credits and is determined by how much electricity is used during the year. Each year you will be notified of your share of the margins for the preceding year. Between the time you are notified of your capital credits earned and the time it is paid, your investment is used to maintain and improve the electric system to insure your service is the very best possible.
Capital credits are paid back to the members when the financial condition of the cooperative permits. At that time, your Board of Directors, in accordance with South Dakota law, may begin general refunding of your capital credits to you, even if you no longer receive service from the cooperative. If you move off of our system you should notify us of your current address for future capital credit payments. In addition to the general retirement of capital credits, H-D Electric will retire allocated H-D Electric, East River Electric, and Basin Electric capital credits to estates of deceased members according to established policy.
