Returning money back to our members is an important cooperative value and we hope you agree that it’s also a nice benefit of being a member of JOEMC. The name “capital credits” may sound complex but it’s a simple concept. Capital credits are the annual margins—revenues minus expenses of the cooperative—which are allocated to each member based on their individual purchase and use of electricity. Until they’re returned to members, capital credits are funds used as operating capital to invest in power lines, substations, and other electric system assets that provide all of the JOEMC members with reliable electricity. After using the money for a period of years to finance investments in electric facilities, it is returned to our members.
To assure your return of capital credits and the fiscal health of your cooperative, your Board of Directors has approved and put into place an equity management plan. The plan uses an industry best standard that looks at the percent of member equity to total assets. It includes a schedule for the regular return of member equity in the form of capital credits. The equity plan also determines how much of the cooperative’s investment in electric system assets will be covered through member capital and how much will be covered by long-term debt. Our goal is to balance member capital (equity) and debt in order to give members the lowest possible rates.
The Board of Directors of the Cooperative has authorized retirement of all capital credits for 1998 and 25% of the capital credits for 2020. The projected aggregate amount of capital credits deemed available for retirement is $2,258,176.
Capital credits are monies that remain at the end of the year after operating costs are paid. Capital credits are assigned to each member based on the amount of the member’s electric bills for the year. For example if a member’s electric bills for the year of 2020 totaled $3,441.03 (this is considered the member’s patronage) their portion of the capital credits (also known as allocation) would be $126.48. This is calculated by multiplying the patronage of $3,441.03 times the 2020 allocation factor of 3.67567% to arrive at the current year’s allocation amount of $126.48. So, to calculate how much credit you would receive since we are retiring 25% of the allocation for 2020 you would simply multiply the $126.48 times 25% to realize you should receive a $31.62 credit on your bill this year. If you had service with us in 1998, you would need to add any unpaid capital credits to this $31.62 for your total refund amount.
What is this green letter about?
Jones Onslow is a not for profit electric cooperative so monies remaining at the end of the year after operating expenses have been paid are credited back to the members who created them through the purchase of electricity. These credits are put into a member’s capital credit account and over time, as deemed possible by the board of directors, these credits are returned to the consumer. When the board authorizes a refund, letters are sent to each member who contributed towards the capital credits for that designated year. By signing and returning the form you are confirming you are the person eligible to receive the refund and that Jones-Onslow has your correct information.
Why do I have to sign this form every year?
The cooperative needs to ensure the address of the member is valid for all patrons eligible for a refund and a signed form ensures the address is valid and the member wants to receive the refund for the specific years named in the letter.
Do I have to fill out all of these lines?
If you have completed this information in any of the previous years, all that is needed is your signature. If this is your first year of completing a form like this one, please supply all of the information.
When can I expect my refund?
Typically all signed letters mailed or delivered to us are processed upon receipt. Therefore, if the signed letter is received by the third week of the month the credit should be applied by the end of the same month. The next bill should have a mention of the “Capital Credit Refund” at the top of the statement. Inactive members should receive their refund check during the next month after we have received their signed letter.
Can I mail my payment in the same envelope along with the form?
Absolutely. We open and process all of the mail we receive the same day we receive it, so using the same envelope will not delay the posting of the payment or the capital credit form.
Can I fax the form?
Yes, as long as it is legible
Can I request a check instead of a credit on my bill?
It is preferable to credit your primary electric account because it is more cost effective. Issuing and mailing checks adds an additional amount of labor, postage, and tracking of your refund. Plus the check could be lost or delayed in the mailing process and we want you to receive the benefit of your refund as promptly as possible, but we can issue a check if a member requests it.
My spouse is deployed, what can I do?
If the spouse is the member and the person named on the letter, you can still sign the form if you have provided us with a copy of your power of attorney. Also if the membership is still active and you are listed as the joint spouse on the membership, you can sign the form.
I have had electric service with you for 10 years and never had to fill one of these out?
Jones-Onslow EMC’s board has deemed the company financially stable to refund capital credits for a number of years and we have issued these forms every year. If you do not recall signing a form like this in the past you may have prior years of retirement money available. Contact our service department to determine if you have available money other than this current year and they will send you a form to sign for those years.
The person named on the letter is deceased. What do I need to do?
Heirs of the deceased member may be eligible to receive the member’s capital credits upon receipt of the proper documentation. A death certificate and letter of testamentary are normally required to estate the member’s capital credits. We also need an irrevocable donation of capital credits form signed by the representative or heir of the decedent’s estate. This form can be obtained from any of our consumer representatives upon request.
I have 5 accounts why am I getting just one form?
Even though you have multiple accounts you are considered one member and the allocations are calculated for the entire membership.