What Are Capital Credits?
As a not-for-profit electric cooperative, Carroll EMC returns excess operating revenue back to its Members in the form of capital credits. As you’ve heard before, Carroll EMC is owned by the Members it serves. Once you become a Member of the cooperative and pay the $15 membership fee, you also become part-owner. Capital credits represent each Member-owner’s share of Carroll EMC’s margins or operating revenue remaining after operating expenses. This is what sets us apart from investor-owned-utilities.
The Board of Directors announces the retirement of funds from a specific set of years, and the amount a Member receives is calculated based on their use of electricity for those years. Eligible Members will receive their check after the Board of Directors have finalized financial conditions. Members receive their capital credits as a check in the mail which can be cashed, deposited or applied as a credit to their electric account.
What Are Unclaimed Capital Credits?
Unclaimed capital credits are simply those checks that have not been claimed by Members. The cooperative shares a list of Members whose checks were issued but were returned undeliverable or have otherwise been unclaimed.
Capital Credits FAQs
What are capital credits?
Why is the co-op allowed to show a "profit"?
How is my share determined?
Think of it as profit being split between owners of a company. If there is a $1,000 profit to split between 10 owners, each owner will get $100 of that profit.
Because Carroll EMC is a not-for-profit cooperative, we have margins instead of profits. And instead of each member getting the same share of the margins, the total is divided up based on how much power you purchased that year that led to the margin. If your check ranges year to year, it is a result in change of energy usage, power costs and operation costs.