News > Stearns Electric Returns $2.2 Million in Capital Credit Patronage

Stearns Electric Returns $2.2 Million in Capital Credit Patronage

November 26, 2024

Stearns Electric Association is excited to announce it has returned $2.2 million in Capital Credits to our members.

“As a not-for-profit electric cooperative, Stearns Electric is jointly owned by our member-consumers, or electricity customers,” Stearns Electric CEO Matt O’Shea explained. “Unlike investor-owned utilities, which are designed to make a profit for shareholders, Stearns Electric refunds capital (money), above the cost of operations, to our member-consumers in the form of Capital Credits.”

In September 2024, the Stearns Electric Association Board of Directors authorized a $1.75 million general retirement of Capital Credits to its members, which include:

• Cooperative Capital Credits of $1,200,000
• Generation and Transmission (G&T) Capital Credits of $550,000

Additional Estate Retirements of $471,000 were already paid out this year, bringing the total Capital Credit patronage to $2,221,000 in 2024.

Eligible member-consumers will receive Capital Credit checks in early December totaling $1.75 million. If your residence is serviced by Stearns Electric Association, you may receive money back from the Cooperative if you purchased electricity during the following years:

• 2002 and/or 2019-2023 (Cooperative Capital Credits)
• 1994-1997 (G&T Capital Credits)

Retired Capital Credit amounts of less than $10 are held until additional Capital Credits are retired.

How does the Capital Credit process work?

1. Stearns Electric keeps track of how much electricity members use throughout the year.
2. At the end of the year, the Cooperative completes financial matters and determines whether there are excess revenues (margins).
3. Stearns Electric allocates the margin to members as Capital Credits, based upon their usage of electricity during the year.
4. In the meantime, margins are used by the Cooperative for operating capital, necessary reserves, storm damage and other expenses.
5. When Stearns Electric’s financial condition permits, the Board of Directors decides to retire, or pay, the Capital Credits for previous years.

“These Capital Credit payments are quantifiable proof that as a member of Stearns Electric, you are an owner of a successful, effective organization. Since Stearns Electric’s beginning, we have distributed more than $43 million in Capital Credits to our members,” O’Shea said.

Stearns Electric reminds current and former member-consumers to provide an updated forwarding address to the Cooperative to ensure valid addresses are on file to send Capital Credit checks. Check here to see if you know anyone who has unclaimed Capital Credits.

For more information on Capital Credits, visit our Capital Credits page, or call Stearns Electric at (800) 962-0655 during regular business hours.