In 2021, the Board of Directors approved the retirement of the 1961, 1962 & 1963, capital credits.
Retirement of Capital Credits is a Board of Directors decision that is made on an annual basis.
A 30-year retirement schedule is typically based on the estimated useful life of the electric distribution plant that serves the co-op's members.
Click here to learn more about Capital Credits.
Frequently Asked Questions
I already filled out a claim form, do I need to fill out another one?
No. If you previously filled out a claim form, you do not need to fill out another one.
What are capital credits?
Why haven’t capital credits been retired before now?
What capital credits are not:
Capital credits should not be confused with profits. Retirement of capital credits is a return of member-furnished capital. Cooperatives exist not to make a profit but to provide low cost electricity.
How does the cooperative determine who receives capital credits?
Capital credits are allocated to each member of the cooperative every year based on the total dollar amount of services purchased.
Why do you use a capital credit system?
What happens to a deceased member’s capital credits?
Capital credits in the member’s account belong to the member’s estate. This claim form must be filled out by the executor, administrator, beneficiary or heir.
What happens to a member’s capital credits if the member moves away from the system?
A member who terminates service no longer receives additional capital credit allocations. The balance in the member’s capital credits account is maintained until it is retired in full. It is the member’s responsibility to notify the co-op of any changes in address so that the member can be located when it is time for the retirement of their capital credits.
How are my capital credit allocations used until they are retired?
Capital credit allocations are pooled together and used as operating capital so that we can serve our members with reliable power. These funds pay for power reliability improvements and maintenance and act a resource in the event of a natural disaster that significantly damages the plant. If the co-op refunded the total amount of allocations, we would have to borrow that amount of money to continue operating. Having operating capital helps the cooperative minimize the amount of interest bearing money it must borrow, which in turn helps lower member’s costs by stabilizing rates.
Why didn’t I receive a check?
Does a member have to report capital credits on tax returns?
Capital credits are a return of money paid for electricity in a previous year and generally are not taxable income for residential consumers. Commercial and industrial consumers should discuss any capital credits retirements with their tax advisers.