Your electric cooperative is a not-for-profit organization owned by each member receiving electric service. Capital Credits reflect the non-profit nature of our Cooperative.  Capital Credits are actually the amount of money that is “credited” to an active member’s account at the end of each year.  This amount is based on revenue remaining after expenses have been paid.  Investor-owned utilities return this margin (profit) to the stockholders through dividends.  In the case of a member-owned non-profit cooperative like Haywood EMC . . . the margin is credited to the member owner on a pro-rata basis as capital credits.

Each month as members pay their bills for electric service, your cooperative in turn pays for the expense of providing that service.  Any excess money that remains after these expenses are taken care of provides equity for you as a member in your cooperative.

Capital credits are allocated annually to each member’s Capital Credit account based on the individual’s amount of electricity purchased during that calendar year. As capital credits accumulate, the Coop still retains the amount needed for financial strength, but distributes an amount determined by the Board of Directors and within RUS regulations to their members in a general retirement of capital credits.

In 2023, the Cooperative’s margins allocated were in the amount of $3,198,712 or approximately 6.7% of electric bills rendered.  This means that each member was allocated approximately 6.7% of the annual amount paid to the Cooperative for electric use during 2022.  To compute your individual allocated amount for 2022, simply multiply your annual energy cost by 6.7%.

In addition, retirements are made to the estates of deceased members.  Under this procedure, estate representatives sign a waiver and are immediately paid the present day value of the total unretired allocated amount.  There are certain guidelines to follow and forms to be completed when filing for a deceased member’s capital credits.

Should you have further questions concerning this allocation or the retirement to estates, please call our office.  This notification is just a part of our on-going mission here at Haywood EMC to keep our members informed of business activities.