Capital Credit Retirements Switch to 25 Year Payout

In May 2026, Midwest Energy’s Board of Directors approved a proposal to extend the amount of time between when capital credits are earned, and when they are returned to customers, from 20 to 25 years.

Capital credits, which are the margins remaining after all expenses have been paid to customers, were formerly returned to customers on a roughly 20-year cycle, in proportion to a customer’s electric or natural gas usage. Going forward, capital credits will be returned on a roughly 25-year cycle, with the change gradually phasing in starting in summer 2026.

This represents a necessary change, as during that 25-year period capital credits provide the equity capital  on our balance sheet, which reduces the amount we must borrow from banks to finance the plant that serves our customers,” explained Tom Meis, Midwest Energy’s CEO. 

Think of it as equity in your home,” Meis said.  “If you needed to borrow against your equity to put on a new roof, having a 25-year reserve of equity versus a 20-year reserve would give you much more flexibility in how much you might need to borrow, and under what terms.

We estimate this change will save the Co-op more than $26 million over the next decade and the longer rotation period better aligns with the life of the plant we are financing as well as the term of the loans used to finance the construction.” Meis added.

During the transition from 20- to 25-year payouts, customers will continue to see capital credit statements on their July or August bills, showing the previous year’s earnings, current year disbursements and ending capital credits balance. For 2026, Midwest Energy will pay $4.45 million in capital credits by check to electric customers from 2005, as well as an estimated $800,000 in estate credits, with payments made by check for amounts over $20. There were no gas capital credits in 2005, so gas-only customers from that period will not see checks this year.

Checks will be mailed in July and August.

Meis stressed that each year, the U.S. Post Office returns thousands of checks that are undeliverable, as former customers move away and don’t update their mailing address with the Co-op.

These capital credits are the property of our customers, and getting your capital credits check is a tangible benefit of Co-op membership,” Meis added. He encouraged customers to always notify Midwest Energy whenever they move so future checks can reach them. A list of customers who are owed capital credits, but whose checks were returned by the postal service, is at www.mwenergy.com/residential/capital-credits.