Because you receive your electricity from an electric cooperative, you own part of the company. As a member, your investment into the cooperative is returned to you in the form of capital credits. This is one of the significant differences between an investor-owned utility and a cooperative.
How Capital Credits Work
Capital Credits FAQ
Capital credits represent each member's investment into the cooperative. Because cooperatives do not earn profits in the sense that other businesses do, any margins or revenues remaining after all expenses have been paid are returned to the members in the form of capital credits. Your share is determined by your electric usage.
The profits of Twin Valley Electric are allocated to our members every year. Allocation means the funds that you have invested into the cooperative are tracked, but not accessible in the form of cash. The actual distribution of funds, or retirement of capital credits, happens at the discretion of the board of directors.
At the end of each year, your board carefully assesses the financial condition of the cooperative, and determines what amount of capital credits to retire to our members. Capital credits may not be retired every year.
Electric utilities are capital intensive businesses requiring large investments in equipment. Like all businesses, Twin Valley Electric must maintain a balance between debt and equity to ensure financial stability. Capital credits are a significant source of equity and help to fund the growth and maintenance of the system.
If you move out of our service territory, please keep us informed of your new address so we are sure to contact you regarding future capital credit refunds. To report your current address for capital credit purposes, please call our office at 620-784-5500.
Capital credits allocated to a member’s account belong to the member’s estate. For an estate to receive a refund, a relative or representative must provide Twin Valley with a certified death certificate and fill out the Deceased Capital Credit form. You may download this form and mail form into office.
Capital Credit - Deceased Packet
Mail to:
Twin Valley Electric
PO Box 368
1511 14,000 Rd.
Altamont, KS 67330
If you have any questions about the service you can call the office at 620-784-5500.
The earliest you could receive your capital credit allocation would be once you have reached the age of 65 years and are no longer a member. For this refund, we would need a copy of your drivers license along with the Age Packet filled out. You may download this form and mail form into office.