It’s twice as nice at YEC!
For the first time, York Electric is giving money back to members TWICE this year. As a not-forprofit utility, York Electric returns revenues that exceed operating costs to members as Capital Credits. In May, your cooperative retired $1.5 million to people who were members during 1996, 1997 and 2017. This December, YEC will be giving another $1.5 million back to members who had service during 1997 and 2017, for a total of $3 million dollars back to YOU in 2019! Best of all, YEC planned it just in time for Christmas.
This December, we will return $1.5 million to members who received service in 1997 and 2017. Members will receive Capital Credit checks in the mail. If the member’s refund is less than $15, the amount will be printed as a line item credit on the utility bill. The amount of Capital Credits returned is determined by margins and a percentage of your total energy billings for the years listed above.
If you move, please be sure to leave your forwarding address with us so we may send your Capital Credit check to you. Normally, you do not have to report your Capital Credit payment on your income tax return. However, if you have any questions concerning tax liability, please consult your tax preparer.
For more information concerning Capital Credits, call our Member Services Department at 803-684-4248.
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.