Intercounty Electric Cooperative releases annual unclaimed capital credits list

Licking-based Intercounty Electric Cooperative Association has released its annual list of member-owed unclaimed capital credits.

Members are allocated capital credits each year that Intercounty revenues exceed expenses. The amounts are based on members’ electricity purchases in relation to the total electricity purchased by all members during a given fiscal year.

To understand why capital credits are issued, there needs to be an understanding of the difference between an electric cooperative and a municipal or an investor-owned utility. Cooperative members have a direct input on how the organization is run through their elected board of directors (who are also members). If there is revenue in excess of expenses – commonly referred to as patronage capital or capital credits – it will be returned to members when the financial condition of the cooperative permits.

By allowing Intercounty to use the capital credits, less money needs to be borrowed to operate and there is less of a need to generate revenue through rate increases. This saves the members money by reducing the amount of interest that would normally be charged for using loan funds.

QUESTIONS ABOUT CAPITAL CREDITS

Q: Who receives capital credits?

A: Capital credit notices are issued to members each year that revenue exceeds expenses.

Q: When will I receive a check for my capital credits?

A: Capital Credits will be refunded at the discretion of the board of directors once the financial guidelines established by the Rural Utilities Service (RUS) have been met. The board of directors reviews this annually.

Q: Can my capital credits be applied to my electric bill?

A: Not directly; however, once capital credit allocation checks are issued, the money can be used at the discretion of recipients.

Q: What does the cooperative do with the money represented by members’ capital credits?

A: It is used to repay its long-term debt to RUS and Cooperative Finance Corporation (CFC), to maintain cash reserves for financing of plant replacements, storm damage and other contingencies, and for other proper purposes as deemed necessary by the board of directors.

Q: If someone ceases to be a member of the cooperative or changes their address, are capital credits already credited lost?

A: No, capital credits are recorded at the cooperative office and any credits paid during the time someone was a member will be refunded to you. It is important to keep your address current with the cooperative, even if you are no longer a member. To submit a change of address, call 866-621-3679.

UNCLAIMED CAPITAL CREDITS An alphabetical list of Intercounty members with unclaimed capital credits appears on pages of the June 20 Messenger section published by the Houston Herald.

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