As a not-for-profit cooperative, after Union County Electric deducts costs and upkeep for yearly operations, the net profit is reinvested into the company to provide cash flow, collateral to show stability and to obtain loans. Any net profit over those costs is allocated back to our members in the form of capital credits.
Every member of Union County Electric has shares in capital credits. The more electricity you buy and the longer you use the service, the more equity (allocations) you accumulate. Allocations are the total sum of annual equity accrued by the member during their prior years of service.
Each year, the board makes the decision to return, or retire, capital credits based on the financial condition of the cooperative. When the decision is made to do a refund, the Cooperative will return 4.25% of an active members total equity in the co-op. This is typically done each year in the Spring.
If a member passes away Union County Electric will provide for an early retirement of the capital credits. However, with an early refund, the full amount will not be received, as it will be discounted to take into account withdrawing the funds from the cooperative early.
To receive your capital credit check once you leave our service, it is important to keep us informed of your current address. Often times, checks go unclaimed each year because we are unable to located members who have moved away.