Message from the CEO: Understanding Your Capital Credits

Capital credits function much like dividends on your account when you have active, qualifying services with us. Phone and internet services within our cooperative service area accrue patronage, so the more you use these services, the more you are eligible for capital credits over time. At the end of each year, our Board of Directors reviews the cooperative’s financial performance and determines what portion of margins will be allocated to members. As member-owners, these earnings are assigned to your capital credit account.

Once your membership application is complete, the process is automatic, there’s nothing further you need to do to begin earning capital credits. To properly report and maintain your account, your Social Security number and date of birth, among other information, are required.

When margins are allocated, members with qualifying services receive an updated patronage statement showing their allocations. This keeps you informed about the value being built in your account.

When capital credits are paid out, there are a few options available depending on your situation:

You may choose to have all capital credits remain with your membership and be retired over time as part of the cooperative’s general retirements, as approved by the Board. Upon the death of a membership, you may request an immediate payout of allocated capital credits at present value in a lump sum.

Life events also can impact how capital credits are handled. For example, if a member’s spouse passes away, we work with the surviving member to transition the account to an individual membership. This process requires an Estate Joint Membership Application, a death certificate, and a W-9 form.

Similarly, if a business closes, we require proper documentation, such as proof of dissolution from the Secretary of State and verification of ownership, along with the appropriate capital credit form. At that point, capital credits may either be paid out at present value based on their maturity or assigned fully to an individual member account.

We understand that every situation is different, which is why we offer a variety of forms to meet different needs. You can find all necessary forms on our website, and our team is always available to guide you through the process and answer any questions.

Capital credits are a meaningful reminder of what sets cooperatives apart. They represent your investment, your participation, and your ownership. Thank you for being a valued member of our cooperative.