What are capital credits? - HCTC

What are capital credits?

As a Cooperative, Hill Country Telephone Cooperative, Inc.’s Bylaws provide that telephone service will be provided to members on a nonprofit, service-at-cost basis. If payments in any year exceed the actual operating cost of providing telephone service, the Cooperative must credit the amount in excess of such costs to the patron’s capital credit account(s). Credits are determined annually and are based on patronage to the Cooperative so that each patron will be treated on a fair equitable basis.