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Capital Credits

As a member of Intercounty Electric Cooperative Association, you will be allocated Capital Credits each year that the revenues of Intercounty Electric exceed expenses. Your Capital Credit amount will be based on your electricity purchases in relation to the total electricity purchased by all members during that fiscal year.

In order 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. As a member of a cooperative you have a direct input on how the cooperative is run through your elected director to the Board of Directors, who are also members of the cooperative. As a member if there is revenue in excess of expenses, commonly referred to as patronage capital or capital credits, it will be returned to you, the member, when the financial condition of the cooperative permits. 

By allowing the cooperative to use the capital credits Intercounty Electric needs to borrow less money to operate or has less 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 Regarding Capital Credits

Q: Who receives Capital Credits? Capital Credit notices are issued to members each year that revenue exceeds expenses.

A: Your Capital Credit amount is based on your energy usage.

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. Checks have been issued to members currently retiring years through 1994. The Board of Directors reviews this annually.

Q: Can my Capital Credits be applied to my electric bill?

A: No, since your Capital Credit monies are your investments used to repay long-term debts and maintain reserves for operating the cooperative they may not be used to pay electric bills or other bills owed the cooperative. When Capital Credit allocation checks are issued the money can be used as you want.

Q: What does the cooperative do with the money represented by the member's Capital Credits?

A: The monies represented by the members Capital Credits are used by your cooperative 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 I cease to be a member of the cooperative or change my present address will I lose my Capital Credits credited to me?

A: No, your Capital Credits are recorded at your cooperative office and any credits paid during the time you were 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. By doing so, you will be assured of receiving your refund check if and when a refund is made. If you need to submit a current address please call us at 866-621-3679.

Q: Where can I find what my current Capital Credits are?

A: You may contact your local Intercounty Office in Licking, Rolla, or Mtn. Grove. A record of your Capital Credit history will be sent to you.

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