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Take Advantage of Heat from the Sun
Open curtains on your south-facing windows during the day to allow sunlight to naturally heat your home, and close them at night to reduce the chill you may feel from cold windows.
What are Capital Credits?
Capital Credits are each member's share of GCEA's operating margins in proportion to the amount electricity used during the calendar year.
What are margins?
Margins are what are left at the end of the year after all bills are paid. In other business organizations this is typically called profit.
Why doesn't GCEA call this profit?
As a cooperative, GCEA is here to provide a service, not to make a profit. Unlike a for profit business, any margins or revenues related to the sale of electric service that remain after expenses are paid are set aside as patronage capital and divided among the members.
How does a member know what is their share of margins?
In approximately April or May, operating margins for the previous year are assigned (credited) to each member's Capital Credit account in the form of patronage capital. At this time a notice is mailed to inform the member of their share of patronage capital.
When can members expect to receive their share of patronage capital in cash?
Capital Credits represent an important source of financing for GCEA. GCEA retains Capital Credits as working capital to keep GCEA financially sound, to retire debt and to build equity. The amount of Capital Credits to be refunded is determined by the Board of Directors taking into consideration the general financial well-being of the association. Capital Credits may only be refunded when they can be done so in compliance with GCEA's mortgage requirements. Since GCEA began retiring Capital Credits in 1988 it has returned more than $4 million to its members. GCEA's most recent Capital Credit retirement was in December 2008. At that time GCEA refunded approximately $150,000 of the margins for 1988. The proceeds from that retirement benefited the members that received electric service from GCEA in 1988.
Why doesn't GCEA pay interest on Capital Credits?
GCEA's primary source of income is from the sale of electricity. If the Association paid interest on Capital Credits, the money to pay the interest would have to be collected from members in the form of higher rates.
If I move out of GCEA's service territory, will I still get my Capital Credits?
Yes, but not until a refund is approved by the board of directors and is made to all members who furnished capital at the same time. It is important that members keep GCEA informed of their current addresses so that they will receive their refund when a payment is made.
What happens to members' Capital Credits if they pass away?
Upon the request by legal representative for the estate, GCEA may pay to the estates of deceased members Capital Credits previously allocated. This payment will be discounted to the net present value. Discounting of Capital Credits means that a discount rate is used to reflect the time value of money at the time it is paid. This request must be made in writing and be accompanied by a death certificate. The estate may choose to have the full Capital Credits assigned to another account for normal retirement.
Capital Credit Questions?
If you have any Capital Credit questions, please call our Capital Credit department at 970-641-3520 or 1-800-726-3523 for more information.
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