One of the seven cooperative principles is economic participation. As a member of the cooperative, you have the benefit of the return of patronage capital, or profit. Capital credits reflect your ownership in the cooperative. Your cooperative has returned over 8.6 million dollars in patronage capital checks to its members throughout the years.
As you pay your energy, we utilize the revenue to grow, operate, and maintain a safe and reliable system. Any money that is earned above the costs of doing business is called margins. Your portion of allocated margins is then returned to you in the form of capital credits. Every member gets a "piece of the pie." More information on the capital credit process and why we may be looking for you below!
Capital Credit FAQs
Capital credits cannot be used to pay your current electric bill. However, when the board elects to retire capital credits and return them to members, active members receiving a capital credit will receive them as an energy credit, generally in the fourth quarter of the year.
The board of directors decides when it is financially feasible for capital credits to be returned to members while maintaining adequate reserves of capital business expenses. In recent years, JREC has employed a disbursement strategy in which members who have had outstanding capital credits for the longest period received payments. You will receive your portion of the over $330,690 that is being returned in 2022 on the November statements. '
Capital credits are being returned as follows: 100 percent of all capital credits allocated in 1992 and 25 percent of 1993 and an additional 2.25 percent from 1994 to 2021. Inactive members who are being paid $10 or more will receive a check in the mail by the end of December.
Current members receive an energy credit and inactive members receive a check. It is important that you notify JREC of any address changes when they occur to insure any future checks are received.
Capital credits are yours to keep, even if you are no longer receiving electrical service from JREC. This is why it is important to notify JREC if your address changes.
Several attempts are made to notify members of any unclaimed capital credit funds over the course of multiple years. If not response is received from the member, the unclaimed capital credit funds are transferred to the Federated Youth Foundation to be used for JREC scholarships and charitable donations.
In the event of death, the capital credit account is available for estate retirement. The member's heirs are eligible to continue to receive any remaining capital credit funds or can ask to settle the account.
Heirs will need to provide JREC with documentation verifying their claim to the funds. JREC gives heirs the option of either adhering to the regular capital credit retirement schedule, receiving a special one-time payout that is discounted based on the age of the capital credits, or donating the funds to the Federated Youth Foundation (FYF). JREC uses funds from the FYF for scholarships and charitable donations.
Call 715-532-5524 for more information or to initiate settlement of the capital credit account.
Allocation - Your share of the amount of net margins JREC sets aside into a separate account to be used as operating capital for reliability improvements and maintenance over a period of years. You will receive a notice of allocation each year. Active members will have this printed on their April energy bill. Inactive members will receive this information in the form of a letter mailed to their last known address.
This amount cannot be applied to your energy bill. This is informational only.
Retirement - The amount you receive back as a capital credit refund. This amount is a percentage of your total capital credit balance.