Capital Credits

As a member of CAEC, you receive a unique benefit: capital credits. Below is a list of FAQs regarding capital credits.

Click on any question to view the answer.

What are capital credits?

CAEC is a not-for-profit organization; therefore, the difference between our revenue and expenses are returned to our members in the form of capital credits. The remaining amount of revenue after expenses have been deducted is assigned to any member paying bills within the calendar year. Assignment of capital credits is based on a percentage of what you paid (energy, power cost, outdoor lights) on your bills over the period of that year and is scheduled to be paid at a later date, which is determined by your Board of Trustees. Normally, the timeframe follows the average 30-year life cycle of the infrastructure.

How do I get started with capital credits?

Capital credits start accruing once you start paying your monthly bills with CAEC. If you have multiple accounts, your dollars are assigned to one member number. This allows you to receive one check once the retirement process begins.

When do I receive the capital credit amount?

The process of returning capital credits is called retirement. CAEC currently operates under the First In, First Out system (FIFO) for retirement. The philosophy is that the members who first contributed to the system will receive retirements as they become available (we are currently on a 27-year cycle). CAEC has performed retirements over the last 15 years. Our Board of Trustees determines both the retirement method and the amount of retirement.

What is done with the capital credit amount until it is retired?

The dollars are invested in our electric distribution system in the form of maintenance and upgrades, which help provide reliable service for our members.

What if I move away before my capital credits retire?

Your assignment of capital credits are held in your account until they are retired, which is one reason why it is important to keep us informed of your address each time it changes.

What if I pass away before my capital credits are retired?

If an estate exists, the capital credits will be distributed based on your wishes. However, without an estate, the distribution can go to a surviving spouse or your children. The surviving family member will need to complete a Deceased Member Information Form and have their signature notarized in order to qualify.

Why don't other companies have capital credits and perform retirements?

Unlike CAEC, many companies are for-profit corporations and not cooperatives. With those types of organizations their margins, or profit, are either kept by the company or distributed to shareholders.

Can I view my capital credits?

Yes. You can do so by visiting our online billing service. Once there, you will need to select the Account Profile option from the My Account tab. You will then be required to login. Then select Capital Credits from the Account Information menu.