Coast Electric Power Association Board Chairman Gil Arceneaux announced recently that the cooperative will retire $4,600,891 in capital credits to its members, which is the largest retirement in company history. Checks will be mailed to eligible current and former members on Friday, Dec. 2. Members who have questions about their accounts can call 877-769-2372 for information.
What are capital credits?
Member-owned cooperatives like Coast Electric are not-for-profit organizations which are operated for the benefit of their members. Accordingly, if there are revenues in excess of operating costs and expenses, those funds are credited to a member’s capital account based on their patronage. Such funds, which are also called “capital credits,” are the life blood that enables cooperatives to satisfy the future growth and power needs of its members.
How do members earn capital credits, or how are they calculated?
Each member is allocated capital credits based on how much energy they get from the cooperative. The more energy a member purchases, the greater the amount of capital credit allocated to the member’s account.
What happens to allocations for members who have passed away or moved outside of the service area?
Capital credits allocated to Coast Electric members always belong to that member, even if they move outside of the co-op’s service area or pass away. Former members, or the estates of deceased members, have two options. They can choose to continue to receive checks over the next several years until the balance is completely refunded or they may choose to receive their credits in the form of a one-time payment on a net-present-value basis, less any debt that needs to be collected.
What is Coast Electric’s track record on returning capital credits?
Coast Electric has returned a total of more than $54 million in capital credits to members since 1961.