What is a capital credit and how does it work?

Capital credits are a way for cooperatives like Heartland to return profits to members, who are also owners. At the end of each year, Heartland’s board determines how much of the profits will be allocated to capital credits, and those profits will be assigned to each member based on your electricity purchases in relation to the total electricity purchased by all members during that fiscal year. These allocated capital credits will then be retained by Heartland and may be retired (paid back) to the members at a later date when it is feasible to do so. Fortunately, Heartland has been in a strong enough financial position to pay back a portion of the capital credits every year since its start in 1997.

For more information on Capital Credits visit our Capital Credits page.