Capital Credits
Yampa Valley Electric is a not-for-profit corporation formed as a membership cooperative. As such, anyone receiving electric service from YVEA is considered a member of the cooperative. Each year’s margins (profits) are allocated back to the members in the form of capital credits according to each member’s revenue for the year. These allocations are then paid back to the members as the financial position of the Association allows.
The Association mails out capital credit allocation cards to members every year, and there always seems to be some confusion about what the information on these cards means.
The traditional red postcards tell members how much money YVEA allocated to their capital credit account from the previous year. YVEA allocates patronage capital back to its members if there are margins at the end of the each calendar year. The allocation is based on each individual member’s use of electricity.
When financial conditions of the Association permit and upon Board approval, YVEA pays capital credits distributions. Even if members move, changed post office box or no longer receive electricity from YVEA, they need to keep the Association updated of their new address so future payments can be sent to them.
The money is not readily available to members; the cards are only for their records. The money that is allocated to their account cannot be applied to your electric bill as a credit. Member equity is the essential tool for YVEA to build, maintain and upgrade facilities necessary in providing members with reliable, economical electric service. So when members receive the red post card in the mail, it is not a bill, so please don’t pay it. It is just information about how much YVEA will pay members in future years.
The Association does not pay allocated capital credits out of the normal rotation other than to estates of deceased individuals, and we do not pay interest on capital credits allocated and not yet retired. To attain a copy of the deceased capital credit member form, click on the blue highlighted text.
In April 2008, The Board of Directors approved a refund of patronage capital in the amount of approximately $2.3 million. Refunded capital will be paid to members of the Association in 1993 and 1994.
