Capital Credits

Capital Credits represent your share of the cooperative's margins, reflecting your ownership and contribution as a member. These credits are allocated annually and returned to you when the cooperative’s financial position allows. It’s one of the many benefits of being a cooperative member.

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Understanding Your Capital Credits Benefits

We are a not-for-profit electric cooperative. One of the many unique features of our business model is that we return “capital credits” to members. That means that margins, or the money that’s left at the end of the year after expenses are paid, are allocated to the members of the cooperative. The amount of capital credits is based on how much electricity is purchased in a year. The margins are used by the cooperative as capital to operate the business for a period of time.

Our co-op has returned more than $63 million in capital credits to members over the years.

Update Contact Information For Capital Credits

Discover more information about capital credits below.

Unclaimed Capital Credits-Help us find former members.

Butler Rural Electric Cooperative attempted to issue capital credits checks to these former members in 2019. The checks were mailed to people who had electric service from Butler Rural Electric Cooperative in 2003, 2004, and/or 2018. The checks were returned as undeliverable by the U.S. Postal Service.

Click here for the full list.

Capital Credits Process

Butler Rural Electric Cooperative is a not-for-profit organization. Owned by its member-consumers, the money to cover day-to-day operating costs of the cooperative comes directly from the members paying their monthly electric bills.
At the end of the year, Butler Rural Electric Cooperative subtracts operating expenses from the amount of money collected and the remaining balance is called the margin. The margins left over at the end of the year are allocated, or assigned, to your capital credit account based on individual patronage (the amount of money you pay for your electric bill each year).
Your capital credit account, similar to a bank account, is the accumulation of margins that have been allocated to you each year based on your patronage. At the end of each year, the cooperative deposits your allocated patronage into your capital credit account.
From time-to-time, the board of trustees retires capital credits based upon the financial stability of the cooperative. The board of trustees was delegated this responsibility in the cooperative’s code of regulations.
If the board chooses to retire capital credits, the cooperative will withdraw money from your capital credit account and send it to you in the form of a check (unless you choose to apply it to your bill).

You can use the capital credits statement you receive in February for tax purposes. We recommend you refer any questions you have to a tax professional.

Definitions of Capital Credits Terms

Allocation
An approved method used to assign the margins to an individual’s capital credit account.

Margin
At the end of the year, Butler Rural Electric Cooperative subtracts operating expenses from the amount of money collected and the balance is called the margin.

Member
At the cooperative, you are more than a customer, you are a member-owner.

Operating Costs
The cost to maintain, repair and construct the electric system (poles, wires, substations, etc.).

Patronage
At the cooperative, your patronage is the amount of money you paid on your electric bill each year.

Retirement
A payout from your capital credit account. The cooperative withdrew money from your capital credit account and sent you a check based on the board’s approval of capital credit retirement.

Capital Credits Estates

If a loved one is deceased and has money in his/her capital credits account, the cooperative will pay out the account in full.

Checklist for receiving member’s capital credits estate:

Was the deceased a current member of Butler Rural Electric Cooperative? (Was electric in their name with the cooperative at the time of death?)
YES ► Go to #2
NO ► Go to #3
The service must be transferred out of the deceased’s name. The final bill must be paid before capital credits will be paid out.
Was the estate probated?
YES ► Go to #5
NO ► Go to #4
Was the deceased your spouse?
YES ► Go to #6
NO ► Go to #7
The estate was probated:
Please provide Butler Rural Electric Cooperative with a copy of the Death Certificate.
AND
A Certified Letter of Authority. Check will be made payable to “The Estate of (late member)”
OR
A Summary Release.
Check will be made payable to the administrator.
The estate was not probated and the deceased was your spouse:
Please provide Butler Rural Electric Cooperative with a copy of the Death Certificate
AND
A copy of the Last Will and Testament.
AND
Sign Butler Rural Electric Cooperative’s Release of Capital Credits Agreement.
Check will be made payable to the spouse of the deceased.
The estate was not probated and the deceased was not your spouse:
Please provide Butler Rural Electric Cooperative with a copy of the Death Certificate.
AND
Affidavit stating the estate will not be probated and whom is the responsible party. Check will be made payable to “The Estate of (late member)”
OR
A Summary Release.
Check will be made payable to the administrator.

Frequently Asked Questions

Why do I receive Capital Credits?
As a member of Butler Rural Electric Cooperative, you are also an owner. The cooperative is a not-for-profit utility company, so margins are paid back to members as the board of trustees sees fit. It is another benefit of being a member of an electric cooperative.

What if someone is deceased and they have Capital Credits in their name?
If a loved one is deceased and has money in his/her capital credits account, the cooperative will pay out the account in full, resulting in a check written to “The Estate of (late member).” See Capital Credits Estates information above.

I am moving out of the cooperative’s territory, will I still receive a Capital Credits check?
Yes. Regardless of whether you are a current member or not, all of the money in your capital credit account belongs to you. Please keep your current mailing address up to date, so you can be paid what is owed to you.

Can I have all of the money in my account now?
No, funds are paid out over a period of time.

When will I get my Capital Credits check this year?
Checks are mailed in November. In October, current members will have the option of applying the retired amount to their electric bill.

How does the Butler Rural Electric Cooperative Board of Trustees decide whether or not Capital Credits are paid back?
The board of trustees will examine the current financial state of the cooperative and keep future needs in mind. Margins are decided upon and returned to members after the cooperative’s operational responsibilities have been met.

On my Capital Credit statement I see that I am paid back Capital Credits from other cooperatives and from our G&T (generation and transmission) cooperative, why is that?
As a member-owner of the cooperative, you also own a portion of other cooperatives. Butler Rural Electric Cooperative is a member-owner of Buckeye Power, our power plant near Brilliant, Ohio. We pay you the margins that Buckeye Power sends back to us because Buckeye Power is a cooperative. Also, other cooperatives such as UUS (United Utility Supply) and NRTC (National Rural Telecommunications Cooperative) pay back margins that are owed to you as a member-owner.

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