Q: What is a Cooperative?
A: Cooperatives are locally owned business enterprises, incorporated under the laws of the state in which they operate. Consumers who get service are members of the cooperative and, as such, share responsibility for its success or failure along with the benefits they receive. Collectively, members provide services to themselves as well as their neighbors. A fundamental principle for the cooperative way of doing business is ?non-profit?, with all revenues over the cost of doing business being returned to the members. All members have equal voting rights. It's one member, one vote.
Q: What are Capital Credits?
A: As a non-profit organization, local electric cooperatives operate solely to provide electricity, not to increase profit for shareholders. Dixie Escalante Electric provides electricity at cost to members. At the end of each fiscal year, excess funds are returned in the form of Capital Credits to the members. These capital credit payments historically have involved refunds to every class of customer (irrigation, commercial and residential), and are prorated in accordance with the total amount paid for electricity.
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