Capital credits are based on margins—the dollars that remain after all operating expenses are paid. UEC then returns the credits to members when the cooperative’s finances support payment. Since the program began in 1967, UEC has retired over $130 million in capital credits, $52 million of that just since 2012.
There are years there when costs creep closer to the revenue collected from members resulting in fewer margins to allocate to members. Fewer margins lead to smaller retirements compared with prior years, even when individual electric bills remain similar or higher.