Capital credits represent your ownership in Jackson Electric Cooperative.
This is one of the most unique and rewarding benefits you enjoy as a member of Jackson Electric Cooperative.
Unlike investor-owned utilities that maximize profits to pay dividends to shareholders, not-for-profit electric cooperatives provide members with "at cost" electric service. At the end of the year, after all operational expenses have been covered, a portion of any excess funds are allocated back to the members in the form of capital credits. Before allocating and retiring the capital credits, the Board of Directors must consider the financial condition of the cooperative and the needs for capital funds for the upcoming years. Capital credits may not be retired every year.
Please see the list of Unclaimed Capital Credits. This list represents those who have not stayed in contact with the cooperative and have capital credit retirements remaining in their capital credits account.
Jackson Electric Cooperative Bylaws Article VII, Section 2
In the event of a member's death, an early payment of discounted capital credits is optional. Please complete the form that pertains to your situation and submit to our office: Election to Retire or Assign Capital Credits of Deceased Member: Application by Heir or Election to Retire or Assign Capital Credits of Deceased Member: Application by Estate. The form will be presented to the Board of Directors for action on the payment of discounted capital credits.
The other option is for the heir to accept the capital credits and continue to receive normal payouts from the capital credits account.
Capital Credits Q/A
Cooperative members share in the ownership, construction, maintenance, and prosperity of Jackson Electric Cooperative.
- When you move into a home or establish a business on Jackson Electric's service lines, you become a member of the cooperative.
- A capital credits account is established in your name. Jackson Electric uses this to record your investment in the co-op.
- Each year, any excess funds after expenses are paid are allocated to your capital credits account.
- Capital credits are based on the amount of electricity you purchase, so your allocation may vary each year.
- Annually, the board of directors evaluates the financial condition of the co-op to determine if capital credits retirements can be disbursed. Capital credits may not be retired every year.
The board of directors determine the capital credits retirement total and which years to retire. They generally retire capital credits with the goals of:
- maintaining an equity level that is annually set by the board of directors during their budget process; and
- when the board of directors elect to retire capital credits, the payout will be during the month of December.
After the board of directors approve the retirement of capital credits allocated to a patron or former patron, Jackson Electric:
- applies retired amounts between $25 and $50 to the billing account balance of active members;
- pays retired amounts more than $50 by sending a check for the amount to the patron's most current address on file.
Jackson Electric will not retire and pay capital credits in an amount less than $25 unless the retirement and payment is for all remaining capital credits allocated to a former patron.
An allocation is made annually for each member, based upon the amount of electricity you purchased the previous year. An allocation is your share of the amount of net margins Jackson Electric sets aside into a separate account to be used as operating capital for reliability improvements and maintenance over a period of years. Typically, a Notice of Allocation will be stated on your September billing statement.
A retirement is the amount you receive in the form of a capital credits check or credit on your billing statement. It is a percentage of your total capital credits balance. The amount retired is decided annually by the board of directors based on the financial needs of the cooperative.
If you are no longer receiving electric service from Jackson Electric, you are still entitled to receive your capital credits. Please keep us updated with your current mailing address so your capital credits retirement can be mailed to you.
If a patron or former patron fails to claim a retired capital credits amount within 90 days from assignment, the capital credits check becomes null and void. A $25 administrative fee will be deducted from the capital credits check if the recipient requests for the voided check to be re-issued. If a patron or former patron fails to claim the retired amount within five years, then Jackson Electric shall provide notice and take any other action required by law.
Jackson Electric issues the unclaimed capital credits to the Federated Youth Foundation (FYF). The FYF is organized as a non-profit corporation to act as a trustee in the solicitation of gifts, grants, and donations including unclaimed funds forfeited pursuant to Sections 185.03(10) and 185.75(1) of the Wisconsin Statutes, and to use such funds to make scholarships to worthy persons in the furtherance of their education and for gifts or donations for charitable purposes.