Once allocations are determined, they are put into a holding account where they are held for a number of years and used by Edisto Electric Cooperative to fund capital improvements for items such as power line construction, transformers, inventory and other equipment. Using the allocations or capital credits for a number of years is an underlying principle of the cooperative business model and is one more way to keep rates competitive by reducing the amount of funds that have to be borrowed from financial institutions by your cooperative.
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