Patronage Capital Credit Information
What are Capital Credits?
Oklahoma Electric Cooperative is a non-profit organization. Any profit or margins, related to the sale of electric service remaining after all expenses have been paid are returned to the members in proportion to their electrical usage.
How are Capital Credits Returned to You, the Member?
Returning capital credits is a two-step process:
First, an allocation determines each member's share of the cooperative's margin for a given year. Margins are "allocated" or assigned to members who purchased electricity from the cooperative during the year in which the margin was generated. This allocation is based on the proportion of electrical sales for that year. Each member's portion is recorded in their capital credit account where it remains until it is "retired" (paid).
After reviewing the financial health of the cooperative, the board of trustees may declare a retirement, at which time all or part of each member's allocated amount is paid. OEC uses the first-in , first-out method (FIFO), meaning earlier years are paid before later years.
Who will receive money this year?
Those who were members between 2003 through 2005 are eligible to checks pending address verification. Over half of the money which will be paid will go to members who still have active accounts. A letter was sent to former members in September asking that they verify their current address. If you were a member during that time period, and you did not receive a letter, a copy of the address verification form is available for download below.
What does OEC do with Capital Credits not yet retired?
Capital credits are a significant source of equity for most electric cooperatives. Equity is used to help meet the operating expenses of the co-op, such as paying for new equipment to serve members and repaying debt.
What does OEC do with Unclaimed Capital Credits?
Sometimes, OEC does not have a good address for a member and therefore does not mail a check. Other times, a check will be mailed, but never is cashed by the recipient. This money is considered "unclaimed". Once a year, OEC will publish the names associated to unclaimed capital credits in our news letter. We will also publish a list of those names at our website. Members on that list may complete the address verification form to provide a good address and a check will be written. Checks will only be mailed if the dollar value of the check is greater than $25, or if the customer's balance was lower than $25 but has no future allocations.
What Happens to My Family Member's Capital Credits if They Have Passed Away?
If you are the rightful heir, you can complete a notarized form and provide the appropriate documentation to transfer the capital credits into your name. A copy of that form, as well as forms to deal with marriages and divorces, can be found below.
Capital Credit Forms