Capital Credits

Because BUECI is a cooperative owned by its members, it doesn’t earn profits. However, when revenues exceed expenses, the cooperative does earn margins. Each year, those margins are allocated to members in the form of capital credits, which reflect member ownership in BUECI, and the cooperative uses members’ capital to fund operating activities and reduce borrowing, with the intent of later repaying that capital back to members.

The capital funds are generally repaid on a cycle that matches the average life of the utility’s plant assets – the facilities and equipment used to provide utility services including things like electrical generation turbines, power poles, and water tanks. In years past, the Borough provided much of the Cooperative’s plant assets, so the repayment cycle was 12 to 15 years. However, plant assets constructed 2010 to present are largely paid for by you – the members, so the average plant life – and therefore the capital credit repayment cycle – has increased to 12 to 25 years.

After reviewing the cooperative’s finances each year, the BUECI Board of Directors determines whether a portion of capital credits can be retired, or returned, to members. The Board also evaluates the method, basis, priority and timing of all capital credits retirements. Because capital credits are based on the dollar amount of utility services a member purchases, the retirement amount will vary from member to member and from year to year.

The Cooperative returned capital credits totaling $1,189,078 in 2014 and $531,580 in 2015.

How do capital credits work?

2016 Capital Credits Distribution Information

Annually, the BUECI Board of Directors reviews the financials of the Cooperative to determine if capital credits will be issued.  The board evaluates financial ratios which are significantly affected by investment in long-term plant assets such as electric generation facilities and water production facilities.

If you have questions about the capital credits allocated to your account, you can email us at [email protected] or call our CFO between 8:00 AM to 12:00 PM and 1:00 PM to 5:00 PM, Monday through Friday.

Please remember to include your name, account number, mailing address, physical address and the best phone number to reach you, and we will contact you after researching your account.