What are Capital Credits?
Capital Credits represent a member’s allocated share of BCEC margins during the period of time of an active membership with the Cooperative. Margins are any remaining capital in excess of operating costs and expenses at the end of each fiscal year. Yearly margins are allocated to BCEC members based on the amount billed per member for electric usage and the associated gross margin during that year. This allocation is credited to a Capital Credit account maintained for each member until the credits are retired or paid. At the same time, the value of the margin is proportionally allocated to Capital Credit accounts maintained for each of our current Members.
When will I receive my Capital Credit check?
Capital Credits are retired or paid at the discretion of the BCEC Board of Directors.
What is a G&T Capital Credit Allocation?
BCEC does not generate power but buys it from Golden Spread Electric Cooperative (GSEC). GSEC is a generation and transmission (G&T) cooperative and is owned by BCEC and other neighboring electric cooperatives in our area. GSEC allocates its margins to their electric cooperatives just as BCEC allocates its margins to our members. BCEC allocates those margins to our members when BCEC retires their allocations to BCEC. These allocations are kept separate from the BCEC margin allocations. At the point BCEC receives payment from GSEC on any portion of the G&T allocations, BCEC will retire the corresponding G&T allocation made to members.
Will I get my Capital Credits check if I am no longer a BCEC member?
Once you terminate electric service with BCEC, you withdraw your membership and allocations cease. Capital Credits previously accrued on your account will remain in the Capital Credit account in your name until it is retired. When the BCEC Board of Directors elects to retire allocated Capital Credits for a particular year, a check will be mailed to the last forwarding address given to BCEC. Please remember to notify BCEC when you move to update your mailing address. It is your sole responsibility to maintain up-to-date mailing addresses with BCEC for Capital Credit or other matters concerning your past membership.
How are Capital Credits handled in the case of death?
The heirs of a member or former member can request, in writing, to close out the capital credit account of the deceased BCEC member. With proper legal documentation, the capital credit balance will be retired to the heirs. If you are interested in finding out more about estate retirements, please contact BCEC to speak to the Office Manager.