Capital Credits

Capital Credits signify your ownership in our not-for-profit electric cooperative. They are allocated to members based on their electricity purchases when revenues exceed expenses, acting as a unique form of member equity. As the cooperative's financial health permits, these funds are periodically retired and returned to members, demonstrating a key benefit of cooperative membership.

Unclaimed Capital Credits

Each year, the earnings collected in excess of the cost of providing service, are allocated to CEMC’s members. This allocation is what we call capital credits, or patronage capital. We pay out capital credits in two ways, either by having a general retirement, or at the time of a member’s passing. In 2020, the CEMC Board of Directors approved a General Retirement for the years 1990-1991 and 2019.

When we have a general retirement, we find that not everyone claims these funds, or we have lost contact with them. We hold these funds for our members for five years, at which point we make a final push to find these members. These funds will need to be claimed by September 30, 2026. After that, all remaining funds from the 2020 general retirement will be deposited into Canoochee’s Foundation, The CEMC Foundation, Inc. These funds will be earmarked for education, or for economic development that benefits the members of Canoochee EMC.

Please call (800) 342-0134 if you can help us locate these recipients.

Frequently Asked Questions

An electric cooperative operates on an at-cost basis by annually “allocating” to each member, based upon the member’s purchase of electricity, operating revenue remaining at the end of the year; later, as financial condition permits and approved by the Board of Directors, these allocated amounts—capital credits—are retired. Capital credits represent the most significant source of equity for Canoochee EMC. Capital Credits provide equity for investment in long-term assets, and reduces the amount of financing needed. Since a cooperative’s members are also the people the co-op serves, capital credits reflect each member’s ownership in, and contribution of capital to, the cooperative. This differs from dividends investor-owned utilities pay shareholders, who may or may not be customers of the utility.

Member-owned, not-for-profit electric co-ops, as defined by the IRS as a 501 (c)(12) corporation, set rates to generate enough money to pay operating costs, make payments on any loans, and provide an emergency reserve. At the end of each year, we subtract operating expenses from the operating revenue collected during the year. The balance is called an operating “margin.”

NOT-FOR-PROFIT COOPERATIVE (CO-OP) – A 501 (c)(12) cooperative must receive 85% of its income from members. Pole attachments, cable TV, and phone cables are not member income. An electric cooperative may/may not qualify for the tax treatment in any given year, dependent upon member income evaluation.

Each year, the Canoochee Board of Directors makes a decision on whether to retire capital credits based on the financial health of the cooperative. During some years, the co-op may experience high growth in the number of new accounts, or severe storms may result in the need to spend additional funds to repair lines. These and other events might increase costs and decrease member equity, causing the board not to retire capital credits. For this reason, Canoochee’s ability to retire capital credits reflects the cooperative’s strength and financial stability. The board alone decides whether to retire capital credits. RUS also provides minimum equity levels for Boards to declare retirements.

The Canoochee Board of Directors makes a decision each year whether or not to retire capital credits. When the cooperative is strong enough financially and member equity levels high enough, the board directs staff to retire some portion of past years’ capital credits. We also retire capital credits to deceased members, and pay their capital credits to their estate, or family members.

Capital Credits

Unclaimed Capital Credits

Frequently Asked Questions

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Unclaimed Capital Credits

What Are Capital Credits?

Where Does The Money Come From?

How Are Margins Allocated?

Does Georgia Power Retire Capital Credits?

Are Capital Credits Retired Every Year?

Do I Lose My Capital Credits In The Years The Co-op Decides Not To Make Retirements?

How Much Will Be Retired In Total In A Given Year?

How Much Has Canoochee Paid In Total Capital Credits Retirements Since It Began In 1938?

How Often Do Members Receive Capital Credit Retirements?

Office Locations

Quick Links

Follow Us on Social Media