An Explanation of Patronage Capital (Capital Credits)
EEA is a nonprofit corporation formed as a membership cooperative. As such, members are the shareholders and the stock is in the form of a "no fee" membership certificate.
Each year's margins (profits) are allocated back to the customers in the form of capital credits according to each customer's revenue for the year. These allocations are then paid back to the customers as the financial position of the Cooperative allows.
Empire Electric Association, Inc.’s financial position once again makes it possible to refund capital credits. In May 2017, Empire will pay $1,547,702.22 to 17,950 current and former members who paid electric bills in 1994,1995, and 2016.
“Capital credits are our member-owner’s investment in Empire Electric,” says Josh Dellinger, general manager. “As a non-profit cooperative we refund capital credits to our members as we can afford to do so. We give the money back to our members instead of paying stockholders, as is done in for profit utilities.”
Capital credits are the revenues remaining after all expenses have been paid. This money, along with borrowed funds, is used to pay for needed upgrades. “In other words, Empire invests excess revenues back into our system,” says Mary Thiesing, corporate operations manager. “It helps reduce the amount of money Empire has to borrow and pay interest on. This investment by our members allows Empire to maintain a reliable system and keep rates reasonable.”
Each year the Empire board of directors looks at the financial health of Empire and decides if capital credit refunds will be paid. Since 1939, Empire has refunded about $26,438,533.22 in capital credits.
The 2018 List of Members With Unclaimed Capital Credits are persons or businesses whose capital credit money has gone unclaimed because of an invalid address or whose capital credit checks have gone uncashed. Empire Electric Association, Inc. would like to refund this money. If you know someone on this list please have them contact our office at (970) 565-4444 or (800)709-3726. Identification will be required in order to claim money. Moneys not claimed as outlined in the Bylaws of Empire Electric Association Inc. may be declared forfeited by the board of directors and under such terms and conditions as they may elect.