Capital credits will remain in the name(s) of the original member(s) until Clark County REMC is notified by a spouse, relative, or other legal representative that the account may be re-assigned to another person or transferred to an estate.
Documentation will be required for Clark County REMC to complete a request for capital credits to be re-assigned from the original member(s):
In the case of a member who is deceased:
An Agent Appointment Form completed in front of a notary and returned to the office. (provided by the cooperative).
Photo ID of the representative (to include driver’s license, passport, or other gov’t issued ID).
For a member who is not deceased but needs personal appointment or representative:
Guardianship papers
Certified Power of Attorney papers
Photo ID of the representative (to include driver’s license, passport, or other gov’t issued ID).
In the case of dissolution of marriage:
The Cooperative must receive appropriate legal documentation as proof of the dissolution of marriage between spouses in order to make any changes in the ownership of the capital credits
Otherwise, if the capital credits were associated with a joint membership, they will remain in both members’ names
If the capital credits were associated with a single membership, the capital credits will remain in the original member’s name
Each year, the Clark County REMC Board of Directors makes a decision on whether to refund capital credits based on the financial health of the cooperative.
During some years, the co-op may experience:
Extreme weather patterns which significantly affects kilowatt-hour sales and margins
High growth in the number of new accounts added
Maintaining an optimal equity level
Rate inadequacy due to inflated costs since the last rate revision or severe storms may result in the need to spend additional funds to repair lines and restore electric service
These events might lower cash and member equity, causing the board to defer any capital credit refund. For this reason Clark County REMC’s ability to return margins to members in the form of capital credits reflects your cooperative’s strength and financial stability.
In most cases, your capital credit check is not taxable unless electricity is claimed as a business expense. We suggest that you consult with your tax advisor regarding the appropriate tax treatment of your individual capital credit check.
When you discontinue service with Clark County REMC, you are no longer a member and capital credit allocations will no longer accrue.
Records will be maintained in the former member’s name for the purpose of future retirements
When and if the Clark County REMC Board of Directors elects to retire (pay) capital credits in the future, the check is mailed to the last address on record
It is the responsibility of the former member to maintain a current mailing address with Clark County REMC
Capital credits are retired at the discretion of the Clark County Board of Directors
The Board of Directors will review the financial health of the cooperative to ascertain that business requirements and other obligations have been met before a capital credits retirement is authorized
The prospect of retiring capital credits will be reviewed each year into the future
As long as the financial condition of the cooperative remains strong, the Board expects to authorize retiring capital credits on a yearly basis
You need to know 2 things about Capital Credits to better understand how they work:
Allocations:
When the cooperative has more revenue than expenses in a given year (referred to as a margin), the margin is distributed proportionately (allocated) to all members in the form of capital credits
A record of the yearly allocation is permanently maintained in the member’s name
These allocations are considered each member’s equity in the cooperative
The amount of capital credits a member earns is based on the amount of electricity purchased in a given year
Retirements:
This refers to capital credits that will be paid to you in the future.
The Board of Directors will determine what yearly allocations will be retired (paid back) to the members
This retirement cycle, from allocation to retirement, will typically be 25 years
The 25 year cycle reflects the average service life of electrical distribution plant and also the repayment term on debt that is incurred by Clark County REMC