MVEC’s Board of Directors decide when Capital Credits are returned. Capital Credit distributions are based on a first in, first out basis, meaning margins from approximately 24 years ago are returned to those members first.
- In March 2020, the Board announced a distribution totaling approximately $640,000, which represents electricity purchased in portions of 1995-96.
Since 1959, MVEC has returned over $26 million to member-owners, based on their household’s or business’ previous electric usage.
- What are Capital Credits? At the end of each year, after all the cooperative’s bills have been paid and all expenses considered, the amount of money left over is called a margin. Margins provide equity for the cooperative and are allocated to the members in proportion to their purchases of electricity during the year. Capital Credits are your share of the margin. Capital Credits are allocated annually to each member and are retired in accordance with the cooperative’s bylaws.
- Why did I receive this refund? MVEC makes Capital Credit distributions on a first in, first out basis, meaning margins from 20 years ago are currently being paid out. If you received a check or have a credit on your electric bill, it is because our records indicate that you are eligible to receive a Capital Credit refund at this time.
- Can I retire my Capital Credits early? Members or former members who are age 70 or older can apply for an application to receive their Capital Credits at a discount.
- What if I wish to donate my Capital Credit refund to Operation Round Up? If you received a refund check, simply endorse the check and send it to the cooperative, attention Capital Credits Department. Please indicate you wish to donate the refund to Operation Round Up. If you received a credit on your electric bill, please notify MVEC that you want future refunds to be donated to the Operation Round Up program.
- Is my Capital Credit allocation/retirement taxable? We suggest you seek the advice of a tax professional for any specific questions regarding taxation.
Questions? For more information contact:
Capital Credits Department at (952) 492-2313 or (800) 282-6832 | firstname.lastname@example.org