Margins are Returned to Members

Capital Credits Bring Christmas to July

The Choptank Electric Cooperative Board of Directors voted to return $3.7 million to its members during the month of July. 
Of the $3.7 million to be returned, approximately 68% will be paid to long-time members who have Choptank Electric capital credits owed to them from 1994 and 2021. The other 32% will be paid to members who have been allocated Old Dominion Electric Cooperative capital credits from 2021. 
Any active member who has accrued capital credits in 1994 and 2021 will receive a bill credit applied directly to their July bill. Inactive members must accrue $100 before a check can be sent and must have a good address listed at the co-op to receive their check. The checks are scheduled to be mailed by mid-July. 
From the moment you signed up to receive electric service from Choptank Electric, you became a member of Choptank Electric, not a customer. While investor-owned utilities return a portion of any profits back to their shareholders, electric co-ops operate on an at-cost basis. Co-ops return their margins to the members. Choptank Electric allocates and periodically retires capital credits to its members. The amount received is based on how much electricity the member purchased during a year. 
That’s the cooperative difference, where members are first, every day.

2021 Capital Credit Allocation

Choptank Electric Cooperative is a not-for-profit member-owned utility. Any margins (profits) above the cost of service are allocated back to our member/owners based on how much electricity each member purchased during the year.
The 2021 capital credit allocation was processed in June 2022, after the 2021 financial statements were reviewed and audited. The 2021 capital credit allocation notice for active members was shown on their June 2022 electric bill in the left message area above the bill stub. Inactive members with 2021 electricity billings were mailed a separate allocation notice.
The capital credits (margins) allocated to members’ accounts for 2021 totals $10,028,528. This is allocated between Choptank Electric, which totals $8,100,285 and Old Dominion Electric Cooperative, Choptank’s energy supplier, which totals $1,928,297. 
The Choptank Electric Board of Directors reviews the Co-op portion of capital credits each year and decides how and when to repay the amounts allocated. Their decision is based on a variety of factors including the overall financial condition of the Cooperative. Any decision to repay the ODEC portion of capital credits would be entirely contingent upon refunds received from Choptank’s energy supplier.   
If you have questions about your capital credits, please contact our Member Service Center at 1-877-892-0001. Please have your account number available when you call.