Capital credits represent your membership

As a cooperative we operate on a not for profit basis, which is to say we're not in business to make money, but to provide a service to our member/consumers. By definition, a cooperative is "an enterprise that is collectively owned and operated for the mutual benefit of all members." One of these benefits happens to be the generation, accumulation, and return of capital. Over the past seven decades, REC has paid back over $7,000,000 to past and current members.

Capital credits are based solely on patronage; therefore, the more electricity purchased, the more capital credits earned and eventually returned to the member. Energy rates are established to recover the cost to serve our members plus meet required financial obligations. When the co-op makes margins (profits), the margins are used to pay for capital investments including poles, wire and equipment.

At the end of the year, any margins that exceed annual costs are allocated to you in the form of CAPITAL CREDITS or "patronage dividends," as they are referred to in the by-laws. Each year you will get a statement on your bill indicating exactly how much capital credits are in your account from all meter locations. The issuance and method of payment of capital credit checks requires board approval.

Under the present tax code, when capital credits are refunded they are considered nontaxable only if you did not deduct power usage as a business expense during the year.

Capital credits are allocated in the spring

In the spring, your Capital Credit Allocation Notice will print in the message section of your bill. This notice will show the amount of capital credits allocated for the year. Also included on this notice is the total capital credits issued to date. Some things to remember about this notice are:

• It is not a bill so DO NOT pay the amount shown.
• It is NOT a credit that can be deducted from future light bills.
• It is important you provide us with a current address so when the time comes to pay, we'll know where to mail the check. Capital credits are a unique part of the way cooperatives do business. They are the return on your investment in this Cooperative.

Retirement of capital credits is discretionary

Even if there is a capital credits balance shown for a member/customer account, there is no provision in the Rock Energy Cooperative's bylaws for early payment of capital credits except for estates. Capital credits are paid back on a percentage basis which is decided upon by the Board of Directors. In the meantime, your capital credits are used to maintain and upgrade REC's energy distribution system and to repay associated indebtedness

The general retirement of capital credits will be made at the discretion of the Board of Directors, in accordance with cooperative by-laws.

Unclaimed capital credits

We do maintain a list of active or inactive members who have unclaimed or uncashed capital credit checks on file with Rock Energy Cooperative. If you find a familiar name, please contact us or ask the individual member or the estate executor to contact us personally by phone at 608-752-4550 or toll free at 866-752-4550. You can also contact us by mail at Rock Energy Cooperative, PO Box 1758, Janesville, WI 53547.