Page 14 - Member Handbook

CAPITAL CREDITS
You are an owner
You You already know you are are a a a a a a a a member not a a a a a a a a customer of of o DMEA DMEA You You are are also an owner
of of o the the cooperative DMEA DMEA is a a a a a a not-for-profit corporation owned by the the members fit it fit serves We do not earn excess profits for investors and shareholders Our rates are are set at at at at a a a a a a a a level to to recoup the the costs of operating the the cooperative and and to meet debt obligations Any revenue we collect during the the year over and and above these costs is considered margins These margins are allocated back to the members who purchased electricity during the the the year they were earned The amount amount allocated back to to you you is dependent upon the the the amount amount of capital you you you contributed to to the the the the the cooperative during the the the the the year In other words some of the the the the the money you you paid to to the the the the the cooperative for electric service during the the year is allocated back to to you as capital capital credits The amount amount of of capital capital capital put in by each member member varies varies therefore the the amount amount of of capital capital allocated back to each member member varies varies Although capital credits credits are are allocated annually those credits credits are are retained for for approximately 30 years before being paid to the members For example credits that were allocated in in in 1997 have the the potential to be be paid back in in in 2027 DMEA retains capital credits because they are a a a a a a a a a significant source of of equity for the the the co-op Your Board of of Directors can can choose to to to use them to to to meet co-op expenses such as as purchasing new equipment and paying off debt They also help us us keep your rates low because they reduce the the the amount of money the the the the co-op needs to to borrow to to grow and maintain the the electric system Each year DMEA much much electricity you how much much money you it throughout the At year end DMEA if excess revenue margins exists Margins allocated back to based on the the amount electricity they purchased during that year If financial conditions DMEA’s Board of vote to retire or pay credits credits The credits credits allocated approximately years prior DMEA sends members capital credits via a a a credit or check