How are Capital Credits transferred back to members?

 

 

Capital Credits are assigned to each member annually. The amount of money over and above the actual cost of providing service, called "margins," is first calculated as a percentage of overall income. Then that percentage is applied to the amount you paid for electric service during the year. If margins are, let's say, 5%, then 5% of the amount you paid for electric power that year will be credited to your Capital Credit account.

This allocation is done once a year. You will be sent an allocation statement each year which lists the balance in your Capital Credit account and the amount added that year. This statement is NOT A BILL. It is a statement of your equity, or ownership, in this electric cooperative.

Can you apply my Capital Credits to my bill?

 

 

No. It is a separate account and is not interchangeable with your normal consumer account. Any payments from Capital Credits must be done the same way for all members of the Cooperative, and repayment policy is determined by the Board of Trustees. As a practical matter, if the Co-op repays too many Capital Credits too quickly, then day-to-day Co-op working capital is depleted, and the extra cost of borrowing new money would, of course, be passed on to you, the member. 

Is interest paid on my Capital Credits?

 

 

Since the Cooperative is a non-profit, member-owned company, you do not receive interest or dividends on your capital credits. To pay you interest, we would have to raise your electric rates to cover the cost of the interest. 

When are Capital Credits paid back?

 

 

Upon approval of the Board of Trustees and if the conditions of the lenders are met, then Capital Credits will be paid back to the members.

Capital Credits are currently paid according to a formula that includes new members and long-time members. Capital Credits are also paid to the estates of deceased members when a copy of the death certificate is on file. The name(s) on the membership card are the only ones for which Capital Credits can be earned and thus paid to. 

What if I move?

 

 

If you move from our service area, the Capital Credits accumulated in your account will remain in your name. But moving does not affect when Capital Credits are paid. Whenever Credits are paid for a given year, they are paid to everyone who paid an electric bill that year regardless of whether they remained a member or moved. If you do move remember to keep the Cooperative informed of your current address so that we can send you a refund when Capital Credits are paid.