Capital Credits
The Power of Membership –
If you own stock in any large publicly traded corporation, you probably receive dividends. That’s how the company returns some of its profits to shareholders. In much the same way, cooperatives like Rita Blanca share our profits with member-owners.
Unlike publicly traded utilities, though, Rita Blanca is a not-for-profit organization. That means we don’t mark up the cost of power to provide a return for investors. After our board of directors decides we’ve invested enough funds to grow the cooperative and keep it in good financial condition, we return the rest to our members in the form of “Capital Credits.” In December 2008, we returned a record $1 million in Capital Credit retirements to our member-owners.
Rita Blanca Electric offers some of the most competitive rates in the industry, while remaining financially sound. Capital Credits is one of the most tangible benefits of belonging to a cooperative committed to bringing fair pricing, value and satisfaction to its members.
What are Capital Credits? –
Capital Credits represent your allocated share of Rita Blanca Electric’s profits or margins during the period of time in which you are a member of the cooperative. Each year’s profits are allocated to members based on the amount billed per member for electric purchases during that year. This allocation is credited to a Capital Credit account maintained for each member until the credits are retired (paid).
How is my allocation calculated? –
Capital Credits are allocated to each member based on the member’s purchase of energy during the year and the margins generated by those purchases.
What is the G&T Capital Credit Allocation? –
G&T stand for Generation and Transmission. Rita Blanca Electric does not generate power but buys its power from Golden Spread Electric Cooperative, Inc.(GSEC), which is a G&T cooperative. Rita Blanca Electric and other electric cooperatives in the panhandle own GSEC. Just as Rita Blanca Electric allocates its margins to you - our member-owners- GSEC allocates its margins to the electric cooperatives that own GSEC. When Rita Blanca Electric receives allocations of margins from GSEC, it allocates those margins to you, and the allocations are kept separate from the allocation of Rita Blanca Electric’s margins.
What happens to my Capital Credits if I move and terminate service with Rita Blanca Electric? –
Once you terminate service, you become a former member and will no longer receive additional allocations. Your existing Capital Credit balance will be maintained in a Capital Credit account in your name until it is retired in full. When the Rita Blanca Electric Board of Directors elects to retire any of your Capital Credits in the future, a check will be mailed to the last forwarding address on record.
Note: It is the former member’s responsibility to maintain a correct mailing address with Rita Blanca Electric for the receipt of any future payments or information concerning your Capital Credits.
Since I am no longer a member, can I receive my remaining (non-retired) Capital Credits now? –
No. Capital Credits that have been allocated but not retired will remain in an account for the former member and retired on the normal schedule with the other Capital Credits for those
If you own stock in any large publicly traded corporation, you probably receive dividends. That’s how the company returns some of its profits to shareholders. In much the same way, cooperatives like Rita Blanca share our profits with member-owners.
Unlike publicly traded utilities, though, Rita Blanca is a not-for-profit organization. That means we don’t mark up the cost of power to provide a return for investors. After our board of directors decides we’ve invested enough funds to grow the cooperative and keep it in good financial condition, we return the rest to our members in the form of “Capital Credits.” In December 2008, we returned a record $1 million in Capital Credit retirements to our member-owners.
Rita Blanca Electric offers some of the most competitive rates in the industry, while remaining financially sound. Capital Credits is one of the most tangible benefits of belonging to a cooperative committed to bringing fair pricing, value and satisfaction to its members.
What are Capital Credits? –
Capital Credits represent your allocated share of Rita Blanca Electric’s profits or margins during the period of time in which you are a member of the cooperative. Each year’s profits are allocated to members based on the amount billed per member for electric purchases during that year. This allocation is credited to a Capital Credit account maintained for each member until the credits are retired (paid).
How is my allocation calculated? –
Capital Credits are allocated to each member based on the member’s purchase of energy during the year and the margins generated by those purchases.
What is the G&T Capital Credit Allocation? –
G&T stand for Generation and Transmission. Rita Blanca Electric does not generate power but buys its power from Golden Spread Electric Cooperative, Inc.(GSEC), which is a G&T cooperative. Rita Blanca Electric and other electric cooperatives in the panhandle own GSEC. Just as Rita Blanca Electric allocates its margins to you - our member-owners- GSEC allocates its margins to the electric cooperatives that own GSEC. When Rita Blanca Electric receives allocations of margins from GSEC, it allocates those margins to you, and the allocations are kept separate from the allocation of Rita Blanca Electric’s margins.
What happens to my Capital Credits if I move and terminate service with Rita Blanca Electric? –
Once you terminate service, you become a former member and will no longer receive additional allocations. Your existing Capital Credit balance will be maintained in a Capital Credit account in your name until it is retired in full. When the Rita Blanca Electric Board of Directors elects to retire any of your Capital Credits in the future, a check will be mailed to the last forwarding address on record.
Note: It is the former member’s responsibility to maintain a correct mailing address with Rita Blanca Electric for the receipt of any future payments or information concerning your Capital Credits.
Since I am no longer a member, can I receive my remaining (non-retired) Capital Credits now? –
No. Capital Credits that have been allocated but not retired will remain in an account for the former member and retired on the normal schedule with the other Capital Credits for those
