It’s Going to be a Happy New Year!

Arrowhead Cooperative’s Board of Directors retired Capital Credits for the year 1989, sending out over $233,000 in checks to our members!  These capital credits will be paid to over 2,000 members who have capital credits owed to them from 1989, reflecting their contribution of capital to, and ownership of, the cooperative during those years.

As a nonprofit electric cooperative, Arrowhead Cooperative allocates our annual operating margins to members as Capital Credits.


There are two parts to Capital Credits:


1. Allocations: Each year, Arrowhead Cooperative allocates a portion of the previous year’s margins to our members based on the amount of electricity each member purchased during the year. This amount is retained for a number of years and used by Arrowhead Cooperative to fund capital needs for items such as power line construction, transformers, trucks, inventory, and other equipment. Capital credits help keep rates at an affordable level by reducing the amount of funds the cooperative borrows to grow and maintain the existing electric system. This allocation is the member’s equity in the cooperative.


2. Retirement: Arrowhead Cooperative uses the amount allocated to members for a time, but then returns this amount to members in the form of “retirements,” which are checks issued to members. Each year the Board of Directors reviews the Cooperative’s financials and determines the amount of capital credits to retire.


The co-op’s ability to retire capital credits reflects the cooperative’s strength and financial stability.


Members who move out of our service area should still contact Arrowhead Cooperative to maintain their current address so we can distribute their capital credits at the appropriate time.


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