Capital Credits for Co-op Members
Frequently Asked Questions
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.
No, interest is not earned on capital credits.
Generally, capital credit refunds are distributed during the second quarter of each year.
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 using a 20-year revolving cycle.
For most consumers receiving electric service from South Central Power, the annual capital credit retirement appears as a credit on the electric bill. Consumers with more than five active accounts, those billed under the “LP” rate, and former consumers are sent a retirement allocation notice. Once that notice is signed and returned, a check is mailed to those consumers. Capital credits returned in the form of a check must total at least $10. If the amount due is less than $10, the funds are held until accumulated amounts total $10.
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 four years after the retirement notification, capital credits held for consumers are reallocated and are no longer payable to the former consumer.
Call South Central Power at 800-282-5064. You will need to provide your Social Security number, a valid mailing address and a phone number.
In order to split your capital credits, consumers and former consumers must file a notarized statement listing the names, addresses and Social Security numbers of the parties who will share them. To divide capital credits being held in the name of a business, a letter of dissolution, which can be obtained from the State of Ohio, is also required. The statement of parties who will share the capital credits must list the percentage each party is to receive. Capital credits are paid to business accounts only on a 20-year rotation.
The capital credits of a deceased member are payable without waiting for a general retirement, however that payment is not automatic. A representative of the estate of the deceased member must contact South Central Power to request forms which must be submitted along with a copy of the death certificate. A check for the full amount held in the deceased consumer’s capital credit account is then issued to the estate.