Capital Credits represent each member’s ownership of the cooperative.
A member-owned cooperative does not technically earn profits. Any revenues over expenses are considered margins. Capital Credits are the margins allocated to the members of the cooperative based on their electric purchases from the cooperative. These margins are used by the cooperative as capital to operate the business for a period of time with the intent that the capital credits will be repaid to you in later years.
Allocations and retirements of capital credits are two different things. Allocations are made annually for each member based upon the amount of electricity purchased the previous year. An allocation is the amount set aside into a separate account to be used as operating capital for reliability improvements and maintenance over a period of years. An allocation notice is sent each year to members who received an allocation.
A retirement is the amount you receive back as a capital credit refund. It is a percentage of your total capital credit balance. The percentage to retire is decided by the board of trustees based upon the financial condition of the cooperative. When the cooperative is in good financial standing, capital credits are retired to members. Retirements are generally made 25 years after the year in which the allocation was made. It is important to keep us informed of your current address once you leave our service.
Bluestem Electric Cooperative is often unable to contact a former member when their general retirement of capital credit check has been mailed because of a non-current address on file or the former member is a deceased individual. As a result, these checks go to unclaimed capital credits. To date, Bluestem Electric Cooperative has retired cooperative capital credits through the year 1997.
If you suspect you may have unclaimed capital credits with Bluestem Electric Cooperative, or you are making a claim on behalf of a deceased individual, then please call the Bluestem Electric Cooperative office at 800-558-1580.
If emailing, please include the following information in the email:
- Past member's name
- Past member’s current address or contact information of heir
- Your phone number for follow up if Bluestem has any questions
In few cases, capital credits may be retired early. If you wish to apply for early retirement of capital credits, please contact the Cooperative Office by phone 800-558-1580.
