Q: When can I expect to receive my capital credits refund?
A: Capital credits refunds of $99.99 or less will be credited to active members' December electric bill. Capital credits refunds of $100 or more will be mailed as checks to active members in December. All capital credit payments to prior members will be mailed in December. To assist members experiencing financial hardship during the 2020 COVID-19 epidemic, the Board of Trustees voted to refund capital credits early, in May, rather than waiting until December for that particular distribution.
Q: Are capital credits taxable income?
A: Capital credits are a return of previous years' margins and are not taxable unless electricity is claimed as a business expense.
Q: Why do I get a capital credits refund?
A: Capital credits are each member's share of the margins determined by how much electricity was purchased during the year and the rate under which the member was billed. The return of capital credits sets electric cooperatives apart from other utilities. One of the seven cooperative principles is to operate on a not-for-profit basis by returning any net savings to members on the basis of their patronage.
Q: How does the cooperative determine how much my capital credits refund will be?
A: The Lorain-Medina Rural Electric Cooperative Board of Trustees determines and approves the cooperative's refund annually based on the cooperative's margins. We have to ensure that we are financially stable to refund capital credits by working closely with our management team.
Q: I have lost my capital credits check. Will you send me a new one?
A: We will be happy to replace your lost refund check. However, we do have to wait until after the check has expired, which is 90 days. At that time we will verify that your check has not been cashed and forward your refund information to our accounting department for replacement.
Q: I no longer live within the cooperatives service territory. What happens to my capital credits?
A: Each former member is entitled to continue receiving their portion of the annual capital credits refund they earned during their time with the co-op until completely paid out. Please remember to notify the cooperative of all address changes to ensure prompt delivery of your refund.
Q: Can I close out my capital credits account?
A: Your capital credits balance is not a cash value. It is an amount assumed you will receive over a period of time. Changes by membership to the code of regulations in 2023 has affected this answer. Stay tuned for more info or call the cooperative to discuss current status.
Q: Why do I have to send my Letter of Authority before I can receive an application to close out a deceased member's capital credits account?
A: Due to federal "Red Flag" rules, we must verify that you are authorized to receive the funds from the capital credits account. The federal "Red Flag" rules help to protect our members against identity theft.