Capital Credits

What are Capital Credits?

Capital Credits are each member's share of Gunnison County Electric Associations' (GCEA's) operating margins in proportion to the amount of electricity used during the calendar year.

What are margins?

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.

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.

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 $9.7 million to its members. In December 2020, GCEA retired $927,000 to members who were on service in any of the following years: 1993, 1994, 1995, and 1996.

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.

What happens to members’ Capital Credits if they pass away?

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.

What are unclaimed Capital Credits?

Letters containing capital credit refunds are returned due to a lack of correct address. However, there may also be cases in which capital credit checks were never cashed.  In December 2018, the GCEA Board of Directors elected to return capital credits for the years 1992, 1993, and 1994. GCEA is currently trying to locate members who have unclaimed capital credits from those years.  If you find your name on the 2021 Unclaimed Capital Credit list, please contact GCEA at (800) 726-3523 or (970) 641-3520.  If you know someone on the list, please have them contact us directly.