Coming Soon To A Mailbox Near You
This year, Missoula Electric Cooperative will return just over $1M in capital credits to its members – $1,055,102.73 to be exact. This return is comprised of 100% of 2002 and 9% of 2018 allocations.
What is a Capital Credit?
Capital credits are unique to cooperatives. Instead of focusing on profits, not-for-profit electric cooperatives focus on serving low-cost, reliable electricity to members while providing value to the community. When revenues exceed expenses, co-ops return those margins to members as capital credits. Co-ops hold capital credits for a period to fund long-term improvements to the electric system and to purchase necessary supplies and equipment. Essentially, the co-op borrows from itself and avoids paying interest on bank loans, which keeps electric rates lower. Each spring, if the Cooperative’s financial condition is satisfactory, the Board will meet to determine which years’ capital credits get retired and returned to members. Soon after, eligible members will receive a capital credit check or account credit from the Cooperative.
When can I expect my Capital Credits?
Capital credit checks will be mailed to the mailing address on file in late May. If you were a member in 2002 and/or 2018 and are owed more than $250, you will receive a capital credit check. Active members owed $250 or less can expect a bill credit on their May statement, which will be mailed the first week of June. Inactive members will receive a paper check for amounts owed over $10 since they don’t have an account to credit.
Why did the Co-op introduce account credits this year?
The capital credit process presented a clear opportunity as we continue to identify the different ways we can save our members money. When we apply account credit to members owed less than $250, we significantly reduce the number of checks that require printing and mailing. This adjustment provides substantial cost savings and supports the Co-op’s environmentally friendly approach to doing business.
I’m no longer a member. Can I still expect my capital credits?
If you discontinue service or move out of Co-op’s service territory, you will still receive capital credits as they are retired. It’s important that you keep your address current so you don’t miss out on a future payment. To ensure that past and present members can claim the retired capital credits owed to them, we have a list of unclaimed capital credits on our website. Simply visit https://bit.ly/MyCapitalCredits and search by first, last or business name. This list does not yet include the 2024 retirements.
If you have questions about the capital credit process, the status of your capital credits, or you need to update your mailing address, please contact Dana, our Plant Accountant, at 406.541.6347 or
DanaS@meccoop.com.
