Polk-Burnett gives credit where credit is due
Read about Capital Credits for 2011: It pays to be a co-op member
One of the many benefits of belonging to an electric cooperative is that member-owners get money back. As a non-fot-profit electric cooperative, Polk-Burnett operates at cost. Rates are set to cover the cost of doing business. Any money left over after annual expenses is allocated into a capital credit account for each co-op member. Each year, the board of directors returns a portion of the member allocations. The annual return of this investment is called capital credits. Electric cooperatives are not like other utilities. When members sign up to receive electric service from Polk-Burnett, they become a member-owner. Other for-profit utilities return a portion of profits to stockholders, electric co-ops allocate excess revenue back to members as capital credits.
The amount of each refund is based on elecricity purchased. Capital credits are financial allotments that are earned by members from margins. Margins are the small percentage of additional funds collected from members through their regular monthly payments for electric service that are not needed for the immediate operations of the cooperative. As those margins are collected, they are reinvested in the cooperative for a number of years to pay for long-term projects like replacing or building electric lines, but capital credits equal to those margins are allocated to members for eventual payment.
Why was my neighbor's credit refund bigger (or smaller)?
Capital credits are based on your total payments to the cooperative for kilowatt-hours of energy purchased, including the fixed charges. If you received a smaller credit than your neighbor, it's because you used and paid for less electricity during the period in which the capital credit allocation was earned.
Why didn't I get a capital credit refund?
The capital credit refund cycle is determined by the board of directors. Even if you didn't receive a refund this year, you will earn a capital credit allocation for all years that you are a Polk-Burnett member. Once you're eligible for a refund on those allocations, you'll receive them even if you're no longer receiving electric service from Polk-Burnett, if you've let us know where to find you.
What if I'm no longer an active member?
If you're no longer a member, a check will be mailed to you, if we have your current address.
What happens to unclaimed capital credits?
Prior to 1987, Polk-Burnett was required to give unclaimed capital credits to the State of Wisconsin. Now, however, we can use these dollars for education, and we are proud to offer continuing education scholarship to the children of our members. Polk-Burnett's scholarship program is based on community service and recognizes graduating seniors who make a difference in the lives of others. Read more about Polk-Burnett's Community Service Scholarships.