YEC members will be paid a total of $2 million in Capital Credits in May of 2021. Members who were served by the cooperative in 1998, 1999, 2000, and 2019 should expect money in the form of a check in May or, if the amount is $15 or less, as an electric bill credit beginning in April 2021.
Being a member of YEC means more than being a customer; our members are owners of our cooperative. As an owner, we return revenue exceeding our operating costs back to you. It’s your piece of the pie. Think of it as your cash back from a percentage of the money you pay each year for the energy you use.
As a not-for-profit utility, returning money to members shows your cooperative is in great financial health. Your board of directors has determined we have the money available to return cash to members in addition to saving for our future, maintaining our electrical system and investing in new technologies to better serve you.
YEC member Anne Blake of Rock Hill grew up on co-op lines and has been a member herself since 1967. “York Electric always provides excellent service and makes it clear they truly have the member’s best interest at heart—which is so important, especially these days,” says Blake. “Receiving Capital Credits makes a big difference in my life and they are just another reason why I am grateful to be a member of the co-op.”
Questions about your capital credit allocation? Our member services team is here to help 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.
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.
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.
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.
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.
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.
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.
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.
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.