Cooperative Membership Perk: Capital Credits
At a cooperative, things work a little differently, and that’s a good thing.
Instead of being owned by investors or shareholders, cooperatives are owned by the members they serve. That means you.
HTC exists to serve our members and give back to the communities where we live and work.
We’re also structured as a not-for-profit cooperative. Simply put, we don’t exist to generate profits for outside investors. Instead, we focus on providing reliable service, covering operating costs, investing in our network and returning value to our members whenever possible.
So, What Are Capital Credits?
One of the biggest benefits of cooperative membership is earning Capital Credits.
When HTC collects more revenue than it needs to cover expenses, the remaining money doesn’t become profit for shareholders. Instead, we allocate those funds to our members.
Each year, members earn Capital Credits based on the amount they spend on qualifying services. As long as you have active qualifying service, you can earn Capital Credits annually.
Over time, those credits accumulate and reflect your ownership in the cooperative.
Why Don’t We Pay Them Out Right Away?
Great question!
Before HTC retires and returns Capital Credits, those funds help strengthen the cooperative. We reinvest them into our network to improve reliability, expand capacity, support growth, and adapt to changing technology.
As a result, Capital Credits help us provide better service today while preparing for tomorrow.
When the cooperative is financially able, we retire and return a portion of those Capital Credits to members. This typically happens each year in one of two ways:
- A bill credit issued in August or September
- A check mailed in September
How the Capital Credits Process Works
Here’s a simple look at the process:
- You earn patronage based on the money you spend on qualifying services.
- HTC ends the year with revenue remaining after expenses.
- We allocate those funds to members based on their patronage.
- When financially appropriate, HTC returns Capital Credits as a bill credit or a check.
Members Come First
Capital Credits are one of the many ways HTC puts members first.
By reinvesting in our network, supporting our communities, and returning value to member-owners, we continue the cooperative mission that has guided HTC for generations.