Capital Credits

Your Co-op Gives Back

Did you know electric cooperatives return money to their members? That’s 1 of the biggest differences between Alfalfa Electric Cooperative and investor-owned utilities. When you receive power from AEC, you’re not just a customer — you’re a member-owner.

This reflects the Third Cooperative Principle: Members’ Economic Participation — meaning members contribute equitably to, and democratically control, the capital of the cooperative.

Capital credits demonstrate the cooperative difference in action:

• Members share in the success of their co-op.
• Margins are reinvested locally to reduce borrowing and strengthen AEC.
• Payments return value directly to the people we serve — our members.

How Capital Credits Work

Each year, AEC calculates its margins — the difference between revenues and expenses. Because we operate on a not-for-profit basis, these margins are returned to members in proportion to how much electricity each member purchased during that year.

This process, called capital credit allocation, is one of the most tangible benefits of cooperative membership. Over time, allocations accumulate in your account until they are retired (paid out) when the Board of Trustees determines that the cooperative’s financial condition allows.

When AEC does well, our members share in that success.

Returning Capital: A Two-Step Process

Step 1: Allocation

• AEC determines each member’s share of the cooperative’s annual margins.
• Margins are allocated to all members who purchased electricity that year.
• A record of each member’s capital credit account is maintained.
• Allocated amounts remain in the account until they are retired.

Step 2: Retirement

• Retirement occurs when part or all of a member’s allocated balance is paid back.
• These payments are called capital credits.
• AEC’s Board of Trustees reviews our financial condition each year and determines when retirements can occur.
• When retirements are approved, members receive a check or bill credit for their share.

Claiming Your Capital Credits

Each year, AEC mails checks or applies bill credits to eligible members for retired capital credits. Even if you move out of our service area, your capital credits remain in your account. To ensure you receive future payments:

• Keep your mailing address up to date with AEC.
• Contact us any time your address or contact information changes.

In the event of a member’s death, the estate’s representative can claim the member’s retired capital credits. To begin that process, please contact our office for required documentation and assistance.

Capital Credits Search

To search for uncashed capital credits checks, please look for your first or last name or business name below.

This page was created to enable former members and/or heirs of deceased former members to determine if they have any uncashed capital credits checks. Often, capital credits checks are uncashed because the cooperative does not have contact information for the heir(s) or legal representative.

Email Gina Waugh or Jess Schanbacher with any questions. You may also call (580) 596-3333 during business hours, and they will advise you on how to claim your capital credits.

Unclaimed Credits

Capital Credits FAQ