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Capital Credits

Jefferson Energy Cooperative is a non-profit, member-owned electric cooperative.  Although cooperatives are considered non-profit organizations, they still have to make a certain amount of margins to satisfy the requirements of their lenders.   As part of the cooperative business model, these margins are treated as capital, contributed by the membership to the cooperative, to help keep rates low, and to reduce the cost of borrowing funds for capital needs such as power line construction, transformers, inventory, and other equipment.

At the beginning of each year, members are allocated a portion of the previous year’s margins – called Capital Credits – based on the amount of electricity purchased from Jefferson Energy Cooperative that year.

The Jefferson Energy bylaws and Equity Management policy allow for Capital Credit retirement if the board of directors determines it will not adversely affect or impair the cooperative’s financial position.   Additionally, the board of directors determines when and how much money may be refunded through what is called a general retirement.  Once a retirement of capital is approved, members will receive a check for their portion of the margins retired for the service years designated by the board of directors.

Jefferson Energy Cooperative’s bylaws provide for the early retirement of capital credits for former members who have inactive accounts in a discounted, present-valued, lump sum payout.  The lump sum payout may be refunded for all allocated service years.  A Capital Credit Former Member application must be completed in order to receive the discounted lump sum payout.

Jefferson Energy Cooperative’s bylaws also provide for early retirement of a deceased member’s capital credits in a discounted, present-valued, lump sum payout. The lump sum payout may be refunded for all remaining service years, up to and including the year of the death of the member. A representative of the deceased member’s estate must complete a Capital Credit Estate Application in order to receive the discounted lump sum payment.

As a member of Jefferson Energy Cooperative, you not only get the benefit of affordable, reliable electric service, but the opportunity to receive a return on your investment in the form of Capital Credits.

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