Capital Credits and What They Mean to You

Electric cooperatives provide electric service to our member-owners at the lowest possible cost without a profit motive. This business model allows the return of margins (money left over after all operating expenses are paid) to our member-owners as refunds we call capital credits.

 

Haywood EMC is pleased to announce that the Board of Directors authorized a general retirement of $695,390. This amount is in addition to this year’s estate retirements, estimated at $326,500. That’s a total of more than $1 million flowing back to our member-owners and into the local economy across the eight counties we serve. This is the eighth year in a row your cooperative has returned more than $1 million to our member-owners.

 

Who Receives a Capital Credit Refund?
The refund is derived from member-owner margins allocated during the years 1995 through 2020. If you had service with Haywood EMC in these years, you are among those who will receive a refund. All capital credits prior to 1995 have been returned to the member-owners with valid addresses.

 

When to Expect Your Capital Credits
Checks are mailed in mid-November to member-owners due a retirement of $250 or more, as well as to prior member-owners who no longer receive service at their address, provided they have a valid address. For amounts under $250, or for a delinquent account, the credit is applied to the member-owner’s electric bill in either October or November.

 

Unclaimed Capital Credits
Because unclaimed capital credits must be sent to the State Treasurer, it’s a good idea to make sure Haywood EMC has your up-to-date address if you move off-system, so future refunds are sent to you.

 

You can help us find former member-owners who may have an outstanding capital credits check by visiting  www.haywoodemc.com. If you recognize a name on the list, please ask that person to call the local Haywood EMC office to update their contact information.

 

Capital credits represent your ownership in Haywood EMC and are one of the most unique and rewarding benefits you enjoy as a member-owner of an electric cooperative because it puts your money back where it belongs—with you.

 

Capital Credits How Do They Work? Because electric co-ops operate at cost, any revenues, called margins, are returned to the member-owners in the form of capital credits. Haywood EMC tracks how much electricity you buy throughout the year. At the end of the year, after paying expenses, Haywood EMC calculates margins. Haywood EMC allocates the margins to member-owners as capital credits based on their use of electricity during the year. When Haywood EMC's financial condition permits, your Board of Directors decies to retire or pay, the capital credits. Haywood EMC notifies you of how and when you'll receive your capital credit retirements.