If you’re eligible to receive capital credits from Oklahoma Electric Cooperative this year, you’ll notice one important change. Instead of receiving a check in the mail, your capital credit retirement will automatically appear as a credit on your September electric bill. The amount you’re receiving isn’t changing—only the way you receive it. The new process reduces printing and mailing costs, gets credits to members faster and eliminates concerns about lost or uncashed checks.

What’s changing?

For many years, OEC mailed paper checks to members receiving capital credit retirements.

Beginning this year, eligible members will instead see a line-item credit on their September electric bill.

The credit will automatically reduce the amount owed that month. If your capital credit exceeds your bill, the remaining balance will carry forward and continue reducing future bills until the full amount has been applied.

Members with multiple accounts will receive the credit on their primary electric account.

Prepaid members can expect the credit to be applied during the first week of September.

“This change doesn’t affect how much members receive,” said CEO Patrick Grace. “September electric bills tend to be among the highest because they reflect late-summer energy use. Applying capital credit retirements as bill credits helps ease those seasonal costs.”

Am I receiving capital credits this year?

OEC’s Board of Trustees approved retiring $2 million in capital credits.

Eligible members include those who received electric service during portions of 2011, 2012 and/or 2013.

Members who established electric service after 2013 will receive their allocated capital credits in future retirement cycles.

Current members receive their retirement as a September bill credit.

Former members who are owed capital credits will continue receiving a paper check by mail in September.

What are capital credits?

One of the biggest advantages of being served by a cooperative is that you’re more than a customer—you’re a member-owner.

Each year, after OEC covers operating expenses, any remaining margins are allocated back to members based on the amount of electricity they purchased during that year.

Those allocations are tracked as capital credits.

When the cooperative’s financial condition allows, OEC’s Board of Trustees approves retiring a portion of those accumulated capital credits, returning that value to members.

Why cooperatives are different

Investor-owned utilities distribute profits to shareholders.

Electric cooperatives return value to the people who receive electric service.

Capital credits are one of the clearest examples of the cooperative business model in action. When OEC succeeds financially, members benefit because they own the cooperative.

That commitment reflects one of the Seven Cooperative Principles and remains one of the unique benefits of cooperative membership.

What do members need to do?

Nothing.

If you’re eligible, your capital credit retirement will automatically appear as a credit on your September electric bill.

No forms are required and no action is needed.

To learn more about capital credits, visit okcoop.org/capitalcredits.

OEC’s board of trustees has authorized the distribution of $2 million in capital credits to members of the cooperative who purchased electricity during parts of 2011.

“The issuing of capital credits each year truly highlights what a cooperative is,” said CEO Patrick Grace. “We’ve been working together since 1937 to provide an affordable, reliable service — capital credits signify what it truly means to come together for a common cause.”

Thousands of current and former members will receive a check this month.

What are capital credits?

Unlike investor-owned utility companies that strive to generate profits for shareholders, electric cooperatives like OEC operate on an at-cost basis. Any profits made by OEC – referred to as margins – are returned to the consumermembers. Capital credits represent these dividends.

What qualifies members to receive capital credits?

Capital credits are allocated to each member based on the amount paid to OEC over the years. Currently, we “retire” or issue capital credit checks on a 10-15 year cycle.

What if those owed money are no longer members?

Some who were members in 2011 might no longer be members but are still owed capital credits. Please visit okcoop.org/capitalcredits and, if you see a name you recognize on the list who could’ve been an OEC member during 2011, please have that person submit the online form and any accompanying documents. All address updates must be received in writing.

If you see the name of a family member who is deceased and you are the rightful heir, you can download the form from okcoop.org/capitalcredits and return it along with the appropriate paperwork to transfer all remaining capital credits into your name.

I was a member back in 2010 but didn’t receive a check

Checks were not issued for less than $25 unless a member has no further refunds due for future years. Refunds of less than $25 are retained until and added to the next distribution.

A full list of names – both individuals and businesses owed money – can be found at okcoop.org/capitalcredits along with appropriate forms. Mail paperwork and supporting documents to OEC, P.O. Box 1208, Norman, OK, 73070.