Capital Credits

Included on the August 25, 2017 statement is your Northern Lights patronage and capital credit allocation for the year 2016.  Capital credits are one of the unique features of an electric cooperative.  Capital credits represent our members’ ownership in the Cooperative.  This Capital Credit Allocation does not have a cash value at this time and cannot be applied to your bill.

Much like the retained earnings of other types of organizations, capital credits serve to build equity and maintain cash reserves.  NLI needs certain levels of equity to satisfy the requirements of our mortgage holder.  Reserves are necessary to pay for emergency expenses.  This helps to keep our rates stable.

Annually, after the books have been closed and audited, each member’s amount of capital credits is calculated based on the revenue provided by that member.  Members are then notified of the amount of capital credits that have been allocated to them that year.  The NLI Board of Directors then reviews the financial position of the cooperative and determines how much, if any, capital credits will be refunded to the members in cash.  The board considers the level of cash reserves, future needs for cash and the equity level of the cooperative.

In 2017 the NLI Board of Directors authorized retirement of capital credits.  A link to a list of members that could not be located is listed below.

The Board also annually sets a budget for the retirement of capital credits to estates and members over the age of 80. Links to forms to apply for early retirement are listed below:

For more information call  (208) 263-5141 ext.151 or 1-800-326-9594 ext.151, to speak to a representative.