![]() ![]() When a capital credits retirement is authorized by the Board, both the dollar amount and year(s) to which the allocations relate are specified. The Ocmulgee board of directors usually considers a retirement of capital credits annually. Allocated credits are typically paid to the members in cash over time through a process called capital credits retirement. ![]() An allocation is not the same as stock or cash. Once a year, a notice is published in our monthly newsletter explaining how much capital credits will be allocated to the members. Margins are used for a variety of operating and capital costs and are typically repaid in the future to the members of record for the year in which they were earned. Margins are treated as capital contributed by the membership to the cooperative to help reduce the cost of borrowing and hold down rates. ![]() Each member’s annual credit allocation is accumulated and totaled over the period of time that the member continues to receive service. Each retail member earns the same percentage on their purchases, although the actual dollar amount so “credited” will vary from members to member because it is based upon total individual annual purchases. Instead, any revenues and other income over and above the cost of doing business during a given year are considered “margins.” A percentage of the margins are allocated to each member of the cooperative who bought power from the utility during the year they were earned. As a cooperative, Ocmulgee does not earn profits. Ocmulgee is organized as a cooperative, owned by its members. ![]()
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