Capital Credit FAQ
At Choctaw Electric Cooperative (CEC), every member is an owner of the business. Unlike other electric utilities, CEC exists to meet member’s need, not to make a profit. Instead, any revenue over and above the cost of doing business are considered “margins.” These margins represent an interest-free loan of operating capital by the membership to the co-op. this capital allows CEC to finance operations and sometimes construction with the intent that this capital will be repaid to you in later years. In December 2016 CEC will pay over $1,554,000 to members like you served by the co-op.
Below are answers to common questions for a better understanding of capital credits.
- What are capital credits?
When you signed up to receive electric service from Choctaw Electric you became a member of a not-for-profit electric cooperative. Investor owned utilities return a portion of profits back to their shareholders, CEC returns leftover funds, known as margins, back to our members. This year, members from 1985 – 1987 will receive capital credit refunds, reflecting their contribution of capital to, and ownership of, the cooperative during those years. That may seem like a long time ago. However, those funds helped us to maintain, and expand a reliable electric distribution system, and covered operating costs.
- How long do I have to cash the check?
Checks must be cashed within 90 days. However if the checks are not cashed within 90 days you may return the check to CEC and we will issue a new check.
- Will I get a refund every year?
Policy provides for general rotation (refund) each year when the co-op is financially able to.
- Why am I only receiving part of my capital credits allocation?
Right now, we are returning capital credits accumulated from the years 1985 – 1987. Eventually we will be refunding capital credits from 1988 on, but it is up to our board of trustees to decide how much we will return. Please make sure that whenever you move that you give us your updated mailing information. That way whenever we have future refunds we are sure to send your check to the right address.
- Why didn’t I receive a check?
If you were a member during 1985-1987 there could be several reasons why you did not receive a check.
- Your allocation amount was $5 or less and it was applied to your active account. If your allocation was a smaller amount you may get a check during one of our next capital credit rotations.
- We did not have a current address for your account. We can send you an address update form and re-issue the check as soon as the form with current information is returned.
- The capital credit check was applied to your account if you left CEC and had an outstanding bill.
- Can CEC apply my capital credit check to my bill?
If we have the check here, or if you bring the check to us, we can void the check and apply the capital credits to your account. But, the check must be made out in your name and/or the name that matches the name on the CEC account.
- If I bring my check to your office, will you cash it?
No. You may take the check to your banking facility and cash or deposit it.
- A check was sent to my address, but it’s in the name of a former resident. What should I do?
Checks are sent to the last known address of former CEC members. Please mark “Return to Sender” on the envelope and mail the check back to us.
- My parents, (grandparents, aunt, uncle, brother, sister etc.) are deceased. What happens to that money?
The allocated capital credits will stay in their account until a representative of their estate makes a request for the credits by submitting a certification of entitlement form and a copy of the death certificate. A form is available on our website, it can be mailed, or picked up at any CEC office.
- I received a check with the name of a deceased family member(s) (parents, grandparents, etc.). What do I do with it?
Checks are sent to the last known address of former CEC members. Please mail the check back to us. A representative of the deceased member’s estate may request the credits by submitting a certification of entitlement form and a copy of the death certificate. A form is available on our website, it can be mailed, or picked up at any CEC office.
- I’m no longer a CEC member but I need to change the address on my account.
You will need to complete and return a Patronage Capital Credit Record Update form. A form is available on our website, it can be mailed, or picked up at any CEC office. Once the completed form is returned an address change can be made on your account.
If you have further questions, please give us a call at 800-780-6486 or 580-326-6486. We are here to serve you.