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Cashing the Check
By: Chris Reese, President & CEO
Email: contacttheceo@sussexrec.com
As long-time members know, Sussex Rural Electric Cooperative likes to cap off each year with a special gift to our members: money back through capital credits. Capital credits are a special perk that ONLY members of electric cooperatives like Sussex Rural can receive.
This year, we will be retiring $600,000 total - $300,000 for members on our lines in 2003, $150,000 for members from 2018, and $150,000 for members from 2019. We will be sending out about 13,000 checks total to members from these years based on the amount of electricity they used in those years. Splitting this year’s capital credit retirements between these years means both older and newer members will be able to look forward to a check arriving in their mailboxes very soon.
We split it this way to accomplish two things: to retire the oldest credits on our books (from 2003) and to make sure as many active members (2018/19) as possible receive capital credit checks so that they can realize the benefits of being a member of an electric cooperative. The distribution this year means that over 90% of our active members will receive a check, with 57% active members still on our lines dating back to 2003!
For those unfamiliar with how capital credits work, I’ll provide a brief explanation. At a basic level, capital credits work like this: as a not-for-profit, member-owned cooperative, any profits or “margins” that Sussex Rural Electric Cooperative accumulates are meant to be returned to our members. Before we do this, we reinvest some of these margins into system maintenance and upgrades to keep rates low while ensuring reliable service. During this time, we carefully track and record how much is allocated to each member for each year of membership to ensure that everyone receives the correct amount when the time comes to issue capital credit checks.
Each year, our Board of Directors reviews the financial condition of the Cooperative. If it is determined that the Co-op is in a good position to retire capital credits for a certain year, each member who lived on our lines in that year receives a capital credit check! Even members who have moved away from our lines will receive a capital credit check for the years they were members, as long as they keep us informed of their new address. We keep a list of accounts, closed and open, which have unclaimed capital credits on file. If you think you or someone you know may have missed a check and may be owed capital credits, visit www.sussexrec.com/unclaimed to check this list.
Timing our capital credit retirements with the end of the year allows us to provide our members with a nice little “gift” during a time of year when our members may be spending more money on presents, decorations, and meals. We think of it as our way of sending our members some holiday cheer.
Of course, capital credits only translate to extra money in your pocket if you cash your check. Each year, we find that there is a sizeable percentage of members with capital credits owed to them that never cash their checks! Yes, we know some of these checks can be small amounts for those of you with a partial year of usage or a low amount of usage in the particular year. We’re sure to cap the minimum check to be at least $10.00 - who wouldn’t stop to pick up a $10 laying on the ground? If your allocation is less than $10, we leave it on your account until a subsequent year’s allocation brings your accumulated total above the $10 minimum and you’ll receive your check that year.
As part-owners and investors in your local electric cooperative, this is your money that’s owed to you, so please do cash your check when you receive it. It’s a shame to see our members leave this money on the table. Please, be sure to take advantage of this benefit of membership which most utility customers don’t get to experience.
At the end of a difficult year like 2020, I’m hoping these capital credit checks can be put to good use. Members of Sussex Rural Electric Cooperative are more than just customers, and capital credits are one of our best ways of expressing that.
On behalf of myself, our Board of Directors, and everyone here at Sussex Rural Electric Cooperative, we wish you all a very happy and healthy holiday season. And remember, cash that check!
