MILLIONS OF DOLLARS RETURNED TO ECEC MEMBERS SINCE 1938
CAPITAL CREDITS
MONEY BACK
As you pay your monthly electric bills, Eau Claire Energy Cooperative uses the income to grow, operate and maintain a safe and reliable electrical system. Any money received over and above the cost of doing business is called margins. Your portion of the margins is then returned to you in the form of capital credits. In co-op utilities, the profits are returned to you, the member. In other types of utilities, the profits go to stockholders.
HOW IT WORKS
- Co-op member uses electricity provided by ECEC.
- ECEC tracks member electricity use and payments.
- Year-end accounting and audit are completed. Financial obligations of the cooperative are met.
- Board approves the portion of the margins to be distributed to members as credits.
- Capital Credits are distributed to qualifying members during cooperative month in October:
- Active Members: On-bill credits less than $250 are applied their bill; checks are mailed to members for credits greater than $250.
- Inactive Members receive a mailed check if they meet all qualifications. Please be sure to keep your contact information up to date.
FAQs
Capital credits are one of the benefits of being a member-owner of Eau Claire Energy Cooperative.
When you pay your electric bill, ECEC uses that money to operate, maintain and improve the electric system. After the cooperative's expenses and financial needs are covered, any remaining margins may be allocated back to members as capital credits.
In simple terms, capital credits represent your share of the cooperative's margins and your ownership in ECEC. Unlike an investor-owned utility, where profits may go to shareholders, ECEC's margins stay with the cooperative and its members.
When you pay your electric bill, ECEC uses that money to operate, maintain and improve the electric system. After the cooperative's expenses and financial needs are covered, any remaining margins may be allocated back to members as capital credits.
In simple terms, capital credits represent your share of the cooperative's margins and your ownership in ECEC. Unlike an investor-owned utility, where profits may go to shareholders, ECEC's margins stay with the cooperative and its members.
ECEC does not have outside shareholders expecting a return on their investment. Instead, capital is retained and used to help operate, maintain and improve the electric system. When the cooperative's financial position allows, a portion of those capital credits is returned to members.
Keeping some of those funds in the cooperative helps ECEC maintain a strong financial position and invest in the system while reducing the need to borrow as much money for those investments.
Keeping some of those funds in the cooperative helps ECEC maintain a strong financial position and invest in the system while reducing the need to borrow as much money for those investments.
You earn capital credits by using electricity from ECEC. Each year, the total amount of capital credits to be allocated is divided among members based on how much electricity each member purchased during that year.
In simple terms, the more energy you use, the larger your share of the allocation will be. The amount allocated to your account is the amount of capital credits you earned for that year.
If you are a current member, your allocation is printed on your May billing statement. You can view a pdf of all bills by logging into your SmartHub account. If you are a former member, your allocation notice will be mailed to your forwarding address around the same time.
In simple terms, the more energy you use, the larger your share of the allocation will be. The amount allocated to your account is the amount of capital credits you earned for that year.
If you are a current member, your allocation is printed on your May billing statement. You can view a pdf of all bills by logging into your SmartHub account. If you are a former member, your allocation notice will be mailed to your forwarding address around the same time.
These terms can be confusing, but they are actually pretty simple.
Allocation is when ECEC determines your share of the cooperative's margins for a particular year and adds that amount to your capital credit account.
Retirement is when ECEC returns a portion of those accumulated capital credits to you.
Think of it this way: allocation is adding to your account; retirement is paying some of it back to you.
Allocation is when ECEC determines your share of the cooperative's margins for a particular year and adds that amount to your capital credit account.
Retirement is when ECEC returns a portion of those accumulated capital credits to you.
Think of it this way: allocation is adding to your account; retirement is paying some of it back to you.
Yes. You can designate all or a portion of your capital credits to the Federated Youth Foundation (FYF) at any time. FYF uses these funds to support youth education and leadership opportunities, including the Youth Leadership Conference, Youth Tour, and ECEC's scholarship program.
If you would like to designate all or a portion of your capital credits to FYF, please contact our office. We'd be happy to help you.
If you would like to designate all or a portion of your capital credits to FYF, please contact our office. We'd be happy to help you.
It is yours to cash! Moving away from ECEC's service area does not make you lose the capital credits you earned while you were a member.
Former members continue to receive capital credit retirements when their credits are retired. Since you are no longer receiving an ECEC bill, your retirement will be sent by check to the mailing address we have on file.
If you received a check, you can deposit or cash it just like any other check. If you have questions about the check or your capital credit balance, feel free to reach out to ECEC.
Former members continue to receive capital credit retirements when their credits are retired. Since you are no longer receiving an ECEC bill, your retirement will be sent by check to the mailing address we have on file.
If you received a check, you can deposit or cash it just like any other check. If you have questions about the check or your capital credit balance, feel free to reach out to ECEC.
Your capital credits do not disappear when you move away.
The credits you earned while you were an ECEC member remain associated with your membership. When those credits are retired, ECEC will send your payment by check because you are no longer receiving an ECEC bill.
It's important to keep your contact information up to date with ECEC. You can update your information through SmartHub or update your contact information through this form.
The credits you earned while you were an ECEC member remain associated with your membership. When those credits are retired, ECEC will send your payment by check because you are no longer receiving an ECEC bill.
It's important to keep your contact information up to date with ECEC. You can update your information through SmartHub or update your contact information through this form.
ECEC makes efforts to return capital credits to members and former members. Sometimes, however, we are unable to deliver a payment because we do not have a current address
ECEC publishes notices of unclaimed funds and provides an opportunity for eligible members or their legal representatives to claim them. If the funds are not claimed within the required timeframe, they may be forfeited to ECEC.
Forfeited capital credits are used to support ECEC's community-focused programs, including scholarships through the Federated Youth Foundation.
ECEC publishes notices of unclaimed funds and provides an opportunity for eligible members or their legal representatives to claim them. If the funds are not claimed within the required timeframe, they may be forfeited to ECEC.
Forfeited capital credits are used to support ECEC's community-focused programs, including scholarships through the Federated Youth Foundation.
Capital credits remain associated with the member's account after their death. They do not simply disappear.
The process for transferring or paying a deceased member's capital credits depends on the circumstances of the estate. ECEC may need documentation showing who is legally entitled to receive the funds.
If you are handling the estate of an ECEC member, please contact ECEC directly. Our staff can explain what documentation is needed and help you through the process.
The process for transferring or paying a deceased member's capital credits depends on the circumstances of the estate. ECEC may need documentation showing who is legally entitled to receive the funds.
If you are handling the estate of an ECEC member, please contact ECEC directly. Our staff can explain what documentation is needed and help you through the process.
Not every capital credit retirement is paid the same way.
For active members, ECEC applies eligible capital credit retirements directly to the electric bill in October each year. Active members with a retirement amount less than $250 receive an on-bill credit, while amounts greater than $250 are issued by check.
Former members who qualify for a retirement, receive a check because they no longer have an actively billed ECEC account. These members will only receive a check once the balance to be paid out is greater than $20. This is why you may only receive one periodically versus every year. (Example: last year, your retired amount totaled to $17. That amount is held. This year, your retirement amount totaled to $10. You would receive a check this year to your forwarding address for $27.)
If you expected a capital credit payment but don't see a credit on your bill or didn’t receive a check, contact ECEC. Your mailing address may also need to be updated.
For active members, ECEC applies eligible capital credit retirements directly to the electric bill in October each year. Active members with a retirement amount less than $250 receive an on-bill credit, while amounts greater than $250 are issued by check.
Former members who qualify for a retirement, receive a check because they no longer have an actively billed ECEC account. These members will only receive a check once the balance to be paid out is greater than $20. This is why you may only receive one periodically versus every year. (Example: last year, your retired amount totaled to $17. That amount is held. This year, your retirement amount totaled to $10. You would receive a check this year to your forwarding address for $27.)
If you expected a capital credit payment but don't see a credit on your bill or didn’t receive a check, contact ECEC. Your mailing address may also need to be updated.
If your check was mailed to an old address, fill out the contact information form so we can update your information and help determine the next steps for your check. You can also update your mailing address through SmartHub if you have an active ECEC account.
Keeping your contact information current is especially important for former members because capital credit retirements are mailed by check after you leave ECEC's service area.
Keeping your contact information current is especially important for former members because capital credit retirements are mailed by check after you leave ECEC's service area.
It’s advisable to consult a tax professional for guidance on reporting capital credit refunds on your income tax returns.
ECEC currently retires capital credits each October. Active members generally see the credit on their October bill, while qualifying former members receive a check by mail. You can view your bill and capital credit information through SmartHub.
Your retirement and total balance information can be found on your May and October bills each year. You can view your allocation and retirement by viewing those bills in SmartHub.