What are Capital Credits?

York Elec­tric is a coop­er­a­tive. A coop­er­a­tive is owned by its mem­bers and does not tech­ni­cal­ly earn prof­its. Instead, any rev­enues over the cost of doing busi­ness are con­sid­ered “mar­gins.” These mar­gins rep­re­sent an inter­est-free loan of oper­at­ing cap­i­tal by the mem­ber­ship of the coop­er­a­tive. This cap­i­tal allows York Elec­tric to finance oper­a­tions and, to a cer­tain extent, con­struc­tion. The util­i­ty then returns this cap­i­tal to the mem­bers in lat­er years.