Capital Credits FAQ

How do I earn capital credits?

The amount of capital credits you earn in a given year is based upon the amount of capital you contribute to the co-op through payment of your electric bill. The more electricity you buy, the greater your capital credit account.

Do I earn capital credits every year?

Capital credits are only assigned to members during years Cloverland earns margins (or shows a profit). Since capital credits are a member’s share of the margins, no credits are assigned during a year without any margins. Also, you would not earn capital credits for any year that you did not purchase electricity from Cloverland.

How many capital credits do I have?

A capital credit allocation notice is printed mid-year on monthly electric bills. The notice states your share of the margins for the prior year followed by the total amount of un-retired capital credits in your account.

When are capital credits returned to me?

Capital credits are returned to members over time through a capital credit retirement. Until then, capital credits remain part of the capital invested in the cooperative so we can continue to build and improve our infrastructure and distribution system.

Can I expect a capital credit payment every year?

Not necessarily. The board of directors must first authorize a retirement. Before doing so, the board analyzes the financial health of the co-op. Since its first retirement in 1985, the board tries to authorize a general retirement each year.

Why didn’t I get a check or credit?

If you were a member in the year being retired, and are still an active account, the funds are applied directly to your electric account. If you are no longer an active member, your mailed check may have been returned to us as undeliverable. This is another important reason for members to keep their contact information current on their account. If you believe you should have received a check or bill credit and did not, call our office at (800) 562-4953.

What happens to checks returned to the co-op?

We will make every effort to locate the member using all available resources. Many capital credit refund checks go unclaimed every year. If you’re moving, or know of a co-op member who has, make sure we have the correct address. It may take several years to fully retire and disburse the capital credits allocated to your account. The co-op permanently retains any unclaimed refunds after five years.