Capital Credits are each member’s share of GCEA’s operating margins in proportion to the amount of electricity used during the calendar year.
As you leave active membership with GCEA, it’s important to keep your contact information up to date. Capital credits are returned to members over time, and having your current mailing address on file helps ensure refunds reach you when they are issued, even after you no longer receive electric service from GCEA.
If you have questions about capital credits, please read the FAQ’s below.
Please update your information through the form below.
Margins are what is left at the end of the year after all bills are paid. In other business organizations, this is typically called 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.
Around July each year, 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, certificates are mailed to inform members of their share of patronage capital.
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.
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.
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.
Upon request by the legal representative for a member's estate, GCEA may pay to the estate the Capital Credits previously allocated to the deceased member. 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 and other supporting documents. The estate may choose to have the full Capital Credits assigned to another account for normal retirement. Please contact us for more information.
If you have any other Capital Credit questions, please call GCEA at (970) 641-3520 or (800) 726-3523 for more information.
Each year, GCEA issues Patronage Capital Certificates to show your portion of the co-op’s earnings from the previous year. Its a reflection of your growing share of allocated margins - and our promise is to return that value to you over time.
Prefer to receive your payback sooner? Our Capital Credit Certificate Program gives members the option to cash out prior years’ allocated patronage capital at a discounted value. This flexible option recognizes that members have different financial needs and goals.
Apply it as a credit on your bill Receive it as a check Donate it to support a GCEA community program📬 Certificates were mailed in mid-July — so check your mailbox and don’t miss your chance to claim your piece of the pie! 🥧
📞 For more information, please call 970-641-3520.