The return of patronage capital credits is just one of the many ways that electric cooperatives are set apart from other utility providers. One of the seven cooperative principles is to operate on a not-for-profit basis by returning any net savings to members on the basis of patronage.
Refunding of patronage capital credits is usually reviewed and authorized by the Board of Trustees at their November meeting. If a refund is authorized, refunds will then be issued to current and former eligible member-owners in December of each year.
What are Patronage Capital Credits?
The revenue being generated throughout the year is used to cover the cooperative's cost of power, construction loans, building new services, maintaining existing lines and other cost associated with the distribution of power and maintaining services. Any money left over at the end of the year is considered margins. These margins are allocated and credited to each member as patronage capital credits and based upon their purchases, or patronage, with the cooperative.
How are Patronage Capital Credits returned?
The cooperative retains margins to provide working capital for new construction, equipment and system improvements. For each year the cooperative retains margins, money is allocated to the member-owners. After considering the cooperative's financial conditions, the nine-member board sets the amount to be refunded. Typically, the amount of their capital credit check will gradually increase year to year the longer members are with the cooperative and how much electricity they consume.
Any patronage capital credit refund to a current member of $99.99 or less will appear as a credit on the member's December bill. Members receiving refunds of $100 or greater will continue to receive a check by mail in December.
Since 1980, North Central has refunded $16.16 million in patronage capital credits.
|Capital Credit Refunds || |
|Pre-2005 ||$10,826,545 |
|2005 ||$587,540 |
|2006 ||$667,588 |
|2007 ||$629,828 |
|2008 ||$653,947 |
|2009 ||$761,810 |
|2010 ||$746,423 |
|2011 ||$707,530 |
|2012 ||$579,486 |
|Total ||$16,160,697 |
To Report an address change regarding the return of patronage capital credits, please contact North Central or fill out an online request form.
Unclaimed Funds List
Capital Credit FAQ's