Capital Credits FAQ

What happens to my capital credits if I leave the service area?

Capital credits remain on record until returned. Former consumers are advised to keep your address current with the billing department so that refunds can be made on the normal 20-year rotation. If not claimed within 4 years after the retirement notification, capital credits held for consumers are reallocated and are no longer payable to the former consumer.

How are capital credits returned to co-op members?

Capital credits are refunded to the membership through a general retirement approved by the board of trustees. Before authorizing a retirement and issuing a refund, the board of trustees considers the co-op’s financial condition.

Our co-op refunds capital credits use a 20-year revolving cycle.

What are Capital Credits?

Annually, the co-op determines its net margin (revenue less expenses). The Board of Trustees approves allocating that margin to consumers proportionately to the amount of electricity they purchased in that year. Allocated capital credits are paid on a 20-year cycle, provided the cooperative’s financial position is not jeopardized. In the meantime, South Central Power uses the money as operating capital.

Capital credits are also paid to the estates of deceased members. To claim capital credits on the estate of a deceased member, please call us at (800) 282-5064.