As a cooperative owned by our members, our excess revenues are called margins.  Margins are what is left over after all bills are paid at the end of a particular year.  In other words, when revenues exceed the cost of doing business.

Other businesses return their profits to stockholders.  Cooperatives are different.  In our case, profits are reinvested in plant and technology.  Periodically, as our directors determine it is financially prudent to do so, we give this money back to our members.  Capital Credits are part of the value of our member’s cooperative membership. 

The amount of capital credits is assigned to members based on how much electricity they used during the year the margins were earned.

No, they do not.  Capital credits are only earned and allocated for years in which we earn excess margins.

The money is used to fund operating expenses, plant improvements and technology.  It reduces the need for us to borrow money on your behalf.  Even though you didn’t receive the margins as soon as they were earned, it did help you by keeping your cost per kilowatt hour low and helped us save money on interest from borrowed money. 

Fluctuating fuel prices and weather events can affect margins.  When these extenuating circumstances occur, capital credit payments may be delayed.

All current accounts have their capital credits applied to their account on the June 1 bill for that year.  This is done to save the coop money for postage and cost of checks.  If the consumer has left our service, a check will be mailed to the current address we have on file.

No.  Instead, that money was to benefit members by helping keep rates as low as possible.  This has allowed our rates to be competitive with surrounding utilities.

Each year, the board and management examine our financial stability, including what we need for things like wholesale power, poles, wire, and equipment.  We want to meet certain financial goals before returning capital credits. 

Fluctuating fuel prices and weather events can affect margins.  When these extenuating circumstances occur, capital credit payments may be delayed.

The money allocated to you will be sent when it is paid.  That is why it is important we have a good forwarding address so you can be reached after having left our service.  We will attempt to locate you but if unsuccessful, we will hold your credits until we hear from you.

Your capital credits will be paid to your estate upon your death.  Your personal representative must bring the proper documents (death certificate and court order appointing personal representative) to our office to claim your credits.

Check with your accountant.

There are several ways to address this.  If the estate is still open, we can make the check payable to the estate.  You can also apply for the total capital credit balance to be refunded to the estate on a discounted basis.  This request goes to the board and is voted on at its monthly meeting.  If the estate is not open, or the check cannot be cashed as made payable to the estate, you can produce information that identifies you as the rightful heir and we will issue the check in your name.

A copy of the will naming you as personal representative.