Capital Credits—A Cooperative Bonus
In September, Salem Electric’s Board of Directors authorized the refund of 5% of all outstanding allocated margins, totaling $2,098,649, and representing 47% of the credits allocated in 2007. Due to the large margins, we anticipate it will take approximately three years to refund the credits from 2007.
Capital credit claim forms were mailed to members who opened an account with Salem Electric in 2007. Residential members who opened an account prior to 2007 and have already returned a claim form had their capital credits refunded in October.
What are capital credits?
Salem Electric is a not-for-profit electric cooperative. At the end of each fiscal year, if revenues exceed expenses, margins (operating revenue less operating expense) are allocated to members as capital credits based on the amount the member paid to Salem Electric for electric service during the year.
How will I receive my capital credit refund?
When your credits become payable, a capital credit claim form will be mailed to you. You have the option to receive a check, have the credits applied to your current Salem Electric account, or donate your credits to Salem Electric’s member assistance program.
What happens to my capital credits if I am no longer a member of Salem Electric?
Because capital credits are used for the capital needs of the cooperative, they are not immediately payable when you leave Salem Electric’s service. To ensure payment of your capital credits, keep the cooperative informed of your current mailing address.