Be on the lookout for capital credit retirement checks
November 23rd, 2015
By James Taylor
Central Electric members who received service from the cooperative during years 1995 or 1996 should start looking out for their capital credit general retirement checks. This marks the seventh year in a row that capital credits have been returned to the membership. During this time frame, over $8 million in capital credits have been returned.
As a not-for-profit utility, one benefit of your membership is that excess revenue will be returned to members over time. The cooperative operates as close to at-cost as possible, setting rates to generate enough revenue to purchase power and provide exceptional service. When there is money left over after expenses, the entire amount is allocated back to members in the form of capital credits.
The retirement of capital credits depends on the financial condition of the cooperative. Allocated capital credits are held for a period of time to cover unexpected expenses and growth to the electric system, reducing the need to borrow money to cover expenses.
When the co-op’s financial condition permits, capital credits are retired in the form of checks or bill credits. This year, 100% of capital credits allocated for 1995 as well as 50% allocated for 1996 are being returned. Retirement amounts greater than $25 will be issued a check, while all others will be applied as a bill credit to active accounts. This retirement represents a return of approximately $1 million in capital credits to the membership.
Central Electric continually works to make sure all members receive their capital credit benefit, but it can be difficult due to members moving or changing addresses. If you had service with the cooperative prior to 1995 and have not received a capital credit refund check in recent years, Central Electric may be holding a check in your name. Please review the “Unclaimed Capital Credits” list by visiting the “Quick Links” section on the website homepage; it can also be retrieved at the following link: Unclaimed Capital Credits. If you see your name or the names of family or friends, please have them contact Tabitha Whitlow at 919-708-1616.
Among other benefits, the allocation and retirement of capital credits distinguishes cooperatives and puts value back into the pockets of members. Thank you for your part in another successful year for our cooperative.