Cooperatives are unlike any other utility. We are owned by those we proudly serve. If you are a member of YEC, you are an owner of YEC, so your monthly payment goes farther than simply paying for the electricity you use. Your payment is a tangible way for you to exercise one of the Seven Cooperative Principles, “members’ economic participation.” Your dollar goes to work for you by helping your co-op build equity and invest in your energy future for reliable, affordable power and then it is returned to you as a capital credit.
Each year, your cooperative’s financial health is evaluated by your board of trustees. Returning capital credits to members not only shows your cooperative is in great shape, but it also provides a return on your investment. As a member, your bill payment allows you to add equity to your cooperative, building wealth that helps secure low-interest loans, low service rates for members and investment in system maintenance and improvements that increase service reliability.
Capital credits are returned from the margins generated by York Electric Cooperative, or the money exceeding the cost to operate. This evaluation decision by the board of trustees proportionally allocates money to reinvest into the future of the cooperative and the amount of money to give back to members.
This year, your board of trustees voted to return $2.5 million to members who were served by the cooperative in 2000, 2001 and 2020. For amounts under $15, members should expect a credit on their electric bills during the month of May 2022. For any amount more than $15, please expect a check in the mail. Remember, YEC is always looking out for you.
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.
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.