What Are Capital Credits?
Cooperatives exist to provide members with electric service on a not-for-profit basis. Investor-owned utilities, on the other hand, create a rate structure that will maximize their profits so they can pay dividends to their stockholders who may live out of the state.
Cooperatives also collect more money than it costs to provide electricity, but in a co-op these “margins” do not belong to the corporation. Capital credits belong to individual consumers who pay their monthly electric bills.
These excess earnings are accumulated in order to provide financial stability for your cooperative. This financial stability helps keep rates at a competitive level by reducing the amount of funds that have to be borrowed by your cooperative.
A Return on Your Investment
Each time you pay your electric bill you are making an investment in your co-op. This excess capital is the only form of equity a consumer-owned utility has, and as it accumulates it is assigned to each member’s capital credits account.
How Are Capital Credits Disbursed?
Whenever Newberry Electric Cooperative’s finances permit, we return capital credits to our members. The decision is made by your board of trustees after a thorough examination of the co-op’s financial position.
The cooperative has returned capital credits annually since 1986. Since 1940, when the cooperative was organized, millions of dollars have been returned to thousands of members living here in our community.
If you move out of the Newberry Electric Cooperative’s service area, you should leave your forwarding address with us so we can send your capital credit check to you.
At this time, the only way an account can be “retired” or refunded in full is upon the death of the member. Please call our office for more information on retiring an account.
Unclaimed Capital Credits
Newberry Electric Cooperative is a member-owned, not-for-profit electric utility. Any revenue left over after expenses are paid is returned to the membership in the form of patronage capital. Each year, hundreds of checks are returned as undeliverable by the post office. These names are published in the August edition of the Living in South Carolina magazine each year. If your name or the name of a person you know is listed, please call our office at 803-276-1121 or 1-800-479-8838 and ask for the accounting department.