Capital Credits: A Co-op Member's Dividends

CHEC board of trustees approves $991,190 in capital credits to be paid to members

CHEC’s board of trustees has authorized the distribution of over $991,000 in capital credits to members of the cooperative who purchased electricity during parts of 1990, 1999, 2001 and 2002 — $403,051.60 of which is being passed on by CHEC’s wholesale power provider. CHEC has returned over $8.2 million to members over the last 10 years.

As a not-for-profit entity, cooperatives must return margins above operating costs to consumers. Capital credits are somewhat similar to the dividends paid to shareholders of investor-owned utilities, except the co-op’s “shareholders” are the members it serves, and the “dividends” are the capital credits. It is one of the things that makes the cooperative business unique.

We encourage you to check the list of unclaimed capital credits at www.cooksonhills.com. If you see the name of a family member who is deceased and you are the rightful heir, you can download the form from www.cooksonhills.com and return it along with the appropriate paperwork to transfer all remaining capital credits into your name.

Checks will not be issued for less than $5 unless a member has no further refunds due for future years. Refunds of less than $5 are retained until and added to the next distribution.

If needed, mail paperwork and supporting documents to CHEC, PO Box 539, Stigler, OK, 74462.

Unlike investor-owned utility companies that strive to generate profits for shareholders, electric cooperatives like CHEC operate on an at-cost basis. Any profits made by CHEC — referred to as margins — are returned to the consumer-members. Capital credits represent these dividends.