Q. When can I expect to receive my capital credit refund?
A. Capital credit refunds of $99.99 or less will be credited to active member's December electric bill. Capital credit refunds of $100 or more will be mailed as checks to active members in December. All capital credit payments to prior members will be mailed in December.
Q. Are capital credits taxable income?
A. Capital credits are a return of previous years' margins and are not taxable unless electricity is claimed as a business expense.
Q. Why do I get a capital credit refund?
A. Capital credits are each member’s share of the margins determined by how much electricity was purchased during the year and the rate under which the member was billed. The return of capital credits sets electric cooperatives apart from other utilities. One of the seven cooperative principles is to operate on a not-for-profit basis by returning any net savings to members on the basis of their patronage.
Q. How does the cooperative determine how much my capital credit refund will be?
A. Your Board of Trustees determines and approves the cooperative’s refund annually based on the cooperatives margins. We have to ensure that we are financially stable to refund capital credits by working closely with our management team.
Q. I have lost my capital credit check. Will you send a new one?
A. We will be happy to replace your lost refund check. However, we do have to wait until after the check has expired, which is 90 days. At that time we will verify your check has not been cashed and forward your refund information to our accounting department for replacement.
Q. I no longer live within the cooperative’s service territory. What happens to my capital credits?
A. Each member is entitled to continue receiving an annual capital credit refund. Please remember to notify the cooperative of all address changes to ensure prompt delivery of your refund.
Q. Can I close out my capital credit account?
A. Your capital credit balance is not a cash value. It is an amount assumed you will receive over a period of time. Because of this, we do not close out capital credit accounts except to estates with no surviving spouse.
Q: Why do I have to send my Letter of Authority before I can receive an application to close out my late patent's capital credit account?
A: Due to federal Red Flag rules, we must verify that you are authorized to receive the funds from the capital credit account. The federal Red Flag rules help to protect our members against identity theft.