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Capital Credits

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  1. About Us
  2. Capital Credits
Capital Credits

As a member-owner of Northwestern REC you provide equity for the Cooperative. When you pay your electric bill, any amount paid in excess of the cost and expense of furnishing power creates patronage sourced margins. These margin amounts are not profits like a regular corporation. For a member-owned cooperative, these margin amounts represent each member’s capital contributions (i.e. capital credits) which are used by the cooperative to build utility plant, make improvements and fund capital spending projects.

Member equity (in the form of capital credits) is used to leverage long term loans that finance line construction costs. You can compare it to the down payment required when buying a home. The Cooperative’s members must provide the equity or “down payment” for these loans.

Annually, the Board of Directors determines if the finances of the Cooperative permit a retirement, of previously allocated capital credits and then determines the method and priority of payment.

This year (2022), the cooperative is retiring certain distribution patronage in advance of maturity for 1/4 of 2002 , 45% of 2013 and 1/2 of 2021. We are also retiring generation and transmission patronage for 2007 using the same "time value of money" formula so we can speed up the retirements to the current membership.

Long term members, new members and past members all benefit from this method of retirement by receiving the Capital Credit retirements. Only checks for amounts greater than $5 will be issued. Lesser amounts will be held over until the next retirement. If you move from Northwestern REC’s lines, it is important to advise the office of your new address in order to continue receiving your capital credit checks. Call Northwestern REC at 1-800-352-0014 for information regarding unclaimed capital credits.

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Contact Info

Northwestern REC
22534 State Highway 86, P.O. Box 207
Cambridge Springs, PA 16403

Outages: 800-352-0014, Option 1
Office: 800-352-0014

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©2023 Northwestern Rural Electric Cooperative Association. We emPOWER our communities.

  • Home
  • About Us
    • Our History
    • Your Board of Directors
    • Co-op Management
    • Our Bylaws
    • Annual Reports
    • Capital Credits
    • Careers
    • Q&A
    • Contact Us
  • Co-op Services
    • View or Pay Bill
    • About My Bill
      • Read My Bill
      • Bill Inserts
    • Electric Service
      • 2023 Rates Q&A
      • Apply for Service
      • Our Rates
    • Member Services
      • Apply for Service
      • Billing Options
      • Payment Options
      • Payment Assistance
        • Member-to-Member, Inc.
        • Local Assistance
    • Field Services
    • Water Heater Service
    • Find Your Form
    • Library
  • Co-op Programs
    • Heating & Cooling
      • ETS Room Units
      • Forced Air Units
      • Boiler/Water Units
    • Water Heater Service
    • Energy Efficiency
      • Electric Appliance Rebate
      • Energy Audits
      • Together We Save
    • Co-op Connections Card
    • GenerLink
    • Be Alert for Peak Alerts
  • Community
    • Electric Safety
      • SafeElectricity.org
      • Safety Demos
    • Teacher Grants
    • Scholarships
    • Rural Electric Youth Tour
    • M2M Golf
    • Cambridge Business Center
  • News & Events
    • Annual Meeting
    • PennLines
    • Outage Center
    • Co-op Calendar
    • News from the REC
    • Careers
  • Electric Vehicles
  • Quick Pay