Central Texas Electric Cooperative (CTEC) has allocated more than $2.4 million in capital credits to its members for the year 2024, with the amounts now reflected on June electric bills. This annual allocation underscores a foundational principle of the cooperative model — member ownership and investment in the organization’s success.
Unlike investor-owned utilities, CTEC operates as a nonprofit. That means any revenues left after covering wholesale power and operating expenses are reinvested into the co-op’s electric distribution system or allocated back to members as “patronage capital,” also known as capital credits.
The 2024 allocation totals $2,406,080. These funds represent each member’s share of the co-op’s margins for the year, based on the amount of electricity purchased. Over time, these credits are returned to members either through bill credits or direct payments, often decades after the original allocation.
