Capital Credits: The Power of Membership
As a member of Eastern Illini Electric Cooperative, you have ownership. Any excess revenue above what it costs to run the business (margins earned) is returned to members in the form of capital credits.
We are pleased to let you know that Eastern Illini is returning (retiring) more than $1.1 million in capital credits to members, via more than 6,000 checks, that will arrive in late November.
Capital credits allocated from one half of 1988, 1989, 1990 and 1991 will be returned to those who were members during those years.
Any profits made by Eastern Illini are referred to as margins. Margins result when our revenue is more than our expenses. At the end of each year, any available margins are allocated back to you, our members, into your capital credit account.
When the Board of Directors has determined that the Cooperative has met its financial requirements and any other obligations, they may decide to return (retire) capital credits to members.
Eastern Illini’s President and CEO Bob Hunzinger noted, “The cooperative business model is special for many reasons, but one of the main reasons is capital credits.”
“The financial stake that current members and previous members have, really make Eastern Illini the successful cooperative it is. We are fortunate that our current financial conditions allow us to return a portion of our members’ equity investment.”
Each year we send out a capital credit allocation notice, so you are aware of your equity. Allocations may be made annually for each member, based upon the amount of electricity purchased during the prior year. An allocation is the amount set aside into a separate account to be used as operating capital for reliability improvements and maintenance projects over a period of years.
Retirements refer to the portion of the capital credits allocation to members that is refunded every year, depending on the financial condition of the cooperative. Typically, after utilizing capital for up to 30 years, they are retired. Capital credits have no cash value until they are retired and refunded to you. They cannot be used to pay your electric bill. You will want to consult with your tax professional regarding capital credits on your tax return.
If you, or anyone you know, received electricity from Eastern Illini in the 1980s, please visit the unclaimed capital credit database and search by the last name of the member.
www.eiec.org/your-account/unclaimedcc-search
Keep a Current Address on File
Even if you no longer receive electric service from Eastern Illini Electric Cooperative, you may still be entitled to receive checks from your capital credit allocation account. Keep us updated with your current mailing address, so we can mail your capital credit checks if you are no longer an active member. Should the member of record pass away, the capital credit account is payable to settle the estate. Contact us for more information.