For the first time in YEC’s history, we were able to return $1.5 million dollars back to our members through capital credits in May of 2019. While this milestone shows your cooperative is in tip-top financial shape, it also means there’s more money back in your pocket.
After reviewing our margins for the remainder of this year, your Board of Directors made the decision to retire another $1.5 million dollars to you THIS YEAR. That’s right–YEC will return capital credits for a second time back to our members in 2019. Checks should hit mailboxes around the first week in December, just in time for Christmas.
As a reminder, capital credits are based on your co-op’s yearly margins which means investments in your cooperative’s future, growth and financial health are evaluated each year before determining the amount we can return to you. Rest assured our Board of Directors takes this matter seriously and always has your best interest at heart. For example, we are proud to have the lowest published electric rates in South Carolina and haven’t raised rates in nine years and don’t anticipate any increase for 2020. As a member, you own a piece of the co-op pie and are returned a portion of the profits based on your energy use and years of membership. In May, we returned money back to YEC members who received service from York Electric during the years 1996, 1997 and 2017. The second 2019 retirement will be for members who received service in 1997 and 2017. If your refund is less than $15, the amount will be printed as a line item credit on your utility bill.
Returning capital credits is just another way YEC is always looking out for you. To see more ways your co-op is investing in our greatest asset, our members, look at our year-end member comfort recap, our scholarship opportunities, and the winners of our first Bright Ideas Grant program and more local news in this issue.
Thank you for making 2019 one of our best years yet. Here’s wishing you and your family a Happy Thanksgiving and a Merry Christmas.
President and Chief Executive Officer
Capital Credits FAQ
Capital Credits are a benefit of membership in a member-owned utility. Each year, YEC uses the revenues that exceed operating costs as equity. These funds and borrowed capital allow YEC to serve a growing number of members while implementing the latest technology to provide the best possible service. As a not-for-profit utility, YEC later returns these revenues to the members who originally paid them in their electric bills.
Each year, our members receive Capital Credit checks. Members will receive Capital Credit checks in the mail unless the amount due to them is less than $15. If the member’s refund is less than $15, the amount will be distributed and printed on their utility billing statement as a line item credit. The amount of Capital Credits returned is determined by total revenues received over expenses for the cooperative and your total energy billings for the year. They are paid periodically with board approval after review of YEC’s financial status.
If you leave YEC’s service area, your Capital Credits remain in your name and member number until they are retired. Therefore, you need to make sure YEC has your current mailing address.
Your Capital Credits remain in your name and member number until they are retired. You just need to ensure that York Electric has your current mailing address.
The representative of the estate can have the balance of Capital Credits transferred into the heir’s name and the balance will be paid out as the board of trustees approves refunds.
No. Allocated Capital Credits may not be used to pay current bills. While your electric bill is due monthly, you will not be entitled to your Capital Credits until the board of trustees authorizes a refund. This will take place over many years, since York Electric needs the funds to grow.
Not necessarily. The board of trustees must authorize a refund before you receive a check. When considering a refund, the board analyzes the financial status of the cooperative and will not authorize a refund if it is not in the best interest of the membership.
The amount of Capital Credits you earn in a given year is based upon the amount of electricity purchased. Each member receives a credit based on a percentage for each dollar of electricity purchased.
Capital Credits are calculated by York Electric for every member who purchased electricity during a year in which the utility earned margins. No special action is required to start a Capital Credit account. Your membership with York Electric activates your Capital Credit account.
You should receive an allocation notice each year after a financial audit of York Electric has been completed. During the month of May, members receive Capital Credit checks in the mail unless the amount due to them is less than $15. If the member’s refund is less than $15, the amount will be distributed and printed on their utility billing statement as a line item credit.
York Electric is a cooperative. A cooperative is owned by its members and does not technically earn profits. Instead, any revenues over the cost of doing business are considered “margins.” These margins represent an interest-free loan of operating capital by the membership of the cooperative. This capital allows York Electric to finance operations and, to a certain extent, construction. The utility then returns this capital to the members in later years.