CoServ Board of Directors approve Capital Credit Retirements

The CoServ Electric Board of Directors voted in May to retire $12 million in Capital Credits back to Members.

The Credit will be applied as a bill credit to the August bill for all current Members who joined the co-op before January 1, 2024.

What is a Capital Credit?

They are one of the best parts of being a Member of an electric cooperative.

Capital Credits represent CoServ’s annual margins (profits) that is divided proportionately every year based on each Member’s electricity purchases. The funds are allocated each year to an account in that Member’s name. At the discretion of the board when financial conditions allow, the Capital Credits from past years are retired (paid) to Members.

So what do the retail electric providers do with their profits?

Texans who live in the deregulated market pay their bill to for-profit retail electric providers (REPs), who take their profits and pay them out as dividends to shareholders instead of their customers. So, unlike CoServ Members, REP customers do not receive a return of their investment.

Why is it applied to my August bill?

This summer has been hot, with some of its hottest days still likely to come this month. So, it’s understandable that Members might be concerned about their next bill.

The democratically elected Board of Directors, who are Members just like you, along with CoServ’s executive leadership, made the decision to apply Capital Credits to August bills to provide Members with some relief on what’s usually the highest bill of the year.