What is a capital credit?
It is the member-owner’s equity, which is the owner’s payments in excess of the cost of furnishing his/her electric service. Each dollar paid by a member in excess of the cost of providing electric service represents an investment in the co-op.
What is a capital credit retirement?
It is the return of members’ capital. Retiring capital credits is a way of ensuring that each generation of members pays its own way. An electric cooperative operates on an at-cost or nonprofit basis by annually allocating to each member, based on the member’s purchase of electricity, operating revenue remaining at the end of the year. Later, as finances permit, these allocated amounts — or capital credits — are returned to members.
When was the last time Kenergy retired capital credits?
Approximately $2.7 million in capital credits will be retired in 2019. The amount represented margins allocated in 1990 (100 percent) and 1991 (85 percent). Only members who bought electricity from Kenergy or its predecessors during those years are eligible to receive capital credits.
Are capital credits retired each year?
Each year, Kenergy’s Board of Directors makes a decision whether to retire capital credits based on the financial health of the cooperative. During some years, the co-op may experience high growth or severe storms, which increases costs and lowers margins. For this reason, Kenergy’s ability to retire capital credits reflects the cooperative’s strength and financial stability.
UNCLAIMED CAPITAL CREDITS
Even if you move and are no longer a member of the cooperative, the capital credits remain in your account. Be sure to update your mailing address with Kenergy if you move so we can send future capital credit checks to the correct address.
If you are an heir to an estate, please contact Kenergy if you think capital credits remain in the estate’s account.
A list of unclaimed capital credit refunds in excess of $100 can be found via the link below. If you have any contact information for these individuals, please contact our office at 800.844.4832.