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Co-ops Work for Members

Download our illustrated guide to Capital Credits.

Co-ops Work for Members, Not for Profits (PDF)

What are Capital Credits?

Springwater Electric Cooperative belongs to its members.

  • As owners, members have a responsibility to help finance their business
  • They do this by using our services and by allowing the co-op to retain any money collected in excess of actual operating costs

Where Does the Money Go?

  • The money is used to build and maintain the facilities needed to serve the co-op’s members and to service our long-term debt
  • This money is considered to be capital furnished by the members—capital that will be returned to the members at a later date

Capital Credit Refunds

  • Capital Credits are refunded at the discretion of the Board of Directors whenever the Board determines that the financial condition of the Co-op will not be impaired
  • In years when we issue refunds, eligible active members receive credits on their bills
  • Eligible former members receive a check; and, if the balance in their capital credit account is $100 or less, they receive a full refund
  • Special refunds are paid throughout the year to estates of deceased members

Who are Eligible Members?

Members who had an active account during all or part of the year for which we allocated margins (profits) to members’ Capital Credit accounts

Keep Your Information Updated

  • Because you may receive Capital Credits in the future, it is imperative that you keep the co-op informed of your current address
  • Even when you discontinue service with us, we ask you to give the co-op a current mailing address and notify us of any subsequent address changes so that Capital Credit refunds can continue to be sent to you
  • Fill out our Change of Address Form (PDF)

Name a Beneficiary

You can name a beneficiary to receive your capital credits upon your death by filling out our Capital Credit Beneficiary Designation Form (PDF).

Deceased Members

  • We need to be notified by a relative or other legal representative when a customer of record is deceased so that the account can be put in another person’s name or closed
  • We will refund the deceased customer’s Capital Credits to the customer’s estate in a lump sum discounted payment if the account was listed solely in the customer’s name and is closed
  • For an estate to receive a refund, a relative or representative must provide us with a Letter of Administration that designates a legal representative of the estate
  • To request a deceased member’s unclaimed Capital Credit refunds, fill out the Capital Credits Refund Request Form (PDF)

Please note that members do not receive lump-sum refund checks upon discontinuing service with us.

Capital Credit refunds are made upon Board approval and according to the financial condition of the Co-op

Questions About Your Capital Credits

If you have any questions concerning your Capital Credits, contact us.