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Frequently Asked Questions: About Capital Credits

What are capital credits?

A cooperative does not earn profits in the sense that other businesses do. Instead, any margins, or revenues remaining after all expenses have been paid, are returned to the member-owners in proportion to their usage of the co-op’s services through capital credits allocations and retirements. Capital credits represent each member-owner’s share of the cooperative’s margins and ownership of the co-op.

How does the cooperative determine who receives capital credits?

Capital credits are allocated to each member of the cooperative every year based on participation in the cooperative. The board of directors determines the basis for the allocation. The allocations are based on the total dollar amount of services purchased.

Are Capital Credits only retired to deceased members ?

Not necessarily. The cooperative has established a retirement cycle, approximately 25 years, for the retirement of capital credits. 
In addition to the normal retirement cycle, capital credits of a deceased member are paid to the member’s estate.

What happens to a member's capital credits if the member dies?

Capital credits in the member’s account belong to the member’s estate. In order to assist the member’s heirs in closing the estate, the co-op offers a special capital credits retirement of the outstanding balance of the deceased member’s capital credits account, at a discount. Contact Haywood EMC's Member Services for the forms needed.

What happens to a member's capital credits if the member moves away from the system?

A member who terminates service no longer receives additional capital credits allocations. The balance in the member’s capital credits account is maintained until it is retired in full.
It is the member’s responsibility to notify the co-op of any changes in address so that the member can be located when it is time for the co-op to retire capital credits allocated to the member’s account.

Does the member have to report capital credits on tax returns?

Capital credits are a return of money paid for electricity in a previous year and are generally not taxable income for residential consumers. Commercial and industrial consumers should discuss any capital credits retirements with their tax advisers.

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Waynesville Physical Address

376 Grindstone Road
Waynesville, NC 28785
(828) 452-2281 or (800) 951-6088
(828) 926-4290 Fax

Lake Toxaway Physical Address

298 Blue Ridge Road
Lake Toxaway, NC 28747
(828) 966-4215
(828) 883-3874 Fax

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©2023 Haywood EMC. All Rights Reserved.

  • About Us
    • About Touchstone Energy
    • Board of Directors
    • Management Team
    • Employment
    • Cooperative Principles
      • Cooperative Difference Video
    • Service Territory Map
    • Together We Save
    • News Posts
  • Member Services
    • Capital Credits
      • Frequently Asked Questions
      • Outstanding Capital Credits
    • Billing and Payment Information
      • Easy Ways to Pay
      • Delinquent Bill Timeline
    • Service Rules & Regulations
      • Smart Meter Energy Usage Data Privacy/Security Advisory
      • Title VI Statement of Non-discrimination
    • New Service
      • Application for Electric Service
    • Co-op Connections
    • Rate Schedules
      • EV Rates
      • Time Of Day Rates
    • Safety
      • Storm Preparedness
      • Safety Quiz
      • Tree Trimming
    • Service Forms
      • Service Order Form
      • Medical Condition And Equipment Form
    • Text Outage Alerts
  • Products
    • HomeServe Protection Plans
    • Surge Protection Program
    • Generators
      • Generator Loan
      • Generlink
    • Heat Pump/Weatherization Loan
      • Heat Pumps
    • Security Lighting
  • Your Community
    • Bright Ideas Grants
    • Project HEMC
    • Around the Community
    • The Haywood EMC Podcast
    • Carolina Country Magazine
    • TSE Sports Camp Scholarship
    • News
    • TSE Scholarship
    • Youth Tour
  • Energy Efficiency
    • Electric Vehicles
    • Whole House Energy Audit
    • NC GreenPower
    • Together We Save
    • Energy Star Home Advisor
  • Renewable Energy
    • Renewable Energy Site Assessments
      • Solar Site Assessment
      • Hydro Site Assessment
      • Wind Turbine Site Assessment
    • Renewable Rates
      • RGR Rate
      • RGS Rate
    • Solar with Haywood EMC
      • Certificate Of Completion
      • Typical Components Of A Solar Interconnected System
    • Contracts With Haywood EMC
    • Renewable Energy Information
    • Renewable Energy Sources
    • Interconnection With Haywood EMC
      • Interconnect Application