Each year, the Clark County REMC Board of Directors makes a decision on whether to refund capital credits based on the financial health of the cooperative.
During some years, the co-op may experience:
- Extreme weather patterns which significantly affects kilowatt-hour sales and margins
- High growth in the number of new accounts added
- Maintaining an optimal equity level
- Rate inadequacy due to inflated costs since the last rate revision or severe storms may result in the need to spend additional funds to repair lines and restore electric service
These events might lower cash and member equity, causing the board to defer any capital credit refund. For this reason Clark County REMC’s ability to return margins to members in the form of capital credits reflects your cooperative’s strength and financial stability.