Capital credits are the profits – called margins by cooperatives – that are left over from revenues after all operating expenses are deducted. Margins, along with borrowed funds, are used to finance capital improvements, such as electrical lines, poles, transformers, substations, etc.
Capital credits are allocated annually to each member. To determine your individual capital credit allocation, the margin percentage is applied to the amount you paid for electric service for the year. Once a year, Bon Homme Yankton Electric will send you a notice informing you of the amount allocated to you in capital credits. This capital credit allocation notice is not a bill. It is a statement of your equity, or ownership, in your cooperative. These capital credits will be refunded, or paid back, to you at a future date. If you move from Bon Homme Yankton Electric’s service area, the capital credits accumulated in your account will remain in your name. It is important to keep the Cooperative informed of your current address so that we can send your refund when a general retirement is made. If you have a new address, simply fill out the change of address form below and return it to Bon Homme Yankton Electric.