Capital Credits

A cooperative does not earn profits in the sense that other businesses do. Instead, any margins (revenue remaining after all expenses have been paid) are returned to the members in proportion to their usage of the co-op’s services through Capital Credit allocations and retirements. Capital Credits represent each member’s share of the Cooperative’s margins and ownership of the co-op.

Every business needs to maintain a suitable balance between debt and equity to ensure financial health and stability. Capital Credits are the most significant source of equity for most electric cooperatives. Equity is used to help meet the expenses of the co-op, such as paying for new equipment to serve members and repaying debt. Capital Credits help keep rates at a competitive level by reducing the amount of funds that must be borrowed.

Each year the Board of Directors determines whether the co-op’s financial position permits the return, or retirement, of Capital Credits and, if so, what amount of Capital Credits will be retired.

The Board also decides the method for determining which Capital Credits are returned. At this time, Tri-County retires Capital Credits using the First-in, First-out, or FIFO, method. That means that the Capital Credits that have been invested in the Cooperative for the longest period of time are returned to members first. We are generally on a 25-30 year cycle.

Some other co-ops retire Capital Credits using a percentage method, which means a portion of the total amount of Capital Credits is allocated to a member over time and then are returned each year.

A member who terminates service no longer receives additional Capital Credit allocations. The balance in the member’s Capital Credit account is maintained until it is retired in full.

It is the former member’s responsibility to notify the co-op of any changes in address, so that they can be located when it is time for Tri-County to retire Capital Credits allocated to their former membership account.

Unclaimed Capital Credits

A list of members/former members with capital credits and other miscellaneous credits available for refund, with such credits remaining unclaimed for two or more years will be published online. You can find the most recent list on this page as a PDF.

As approved by the membership of Tri-County Electric Cooperative, any patronage capital or other miscellaneous credits unclaimed after a two year period and remaining unclaimed 60 days after notice in a newspaper of general circulation, published in the county in which the cooperative locates its general headquarters, shall be forfeited and considered to be an irrevocable assignment to the cooperative.

To view 2026 click here.

What are Capital Credits?

What does Tri-County do with Capital Credits?

How does the Cooperative determine who receives Capital Credits?

How does the Cooperative notify members about Capital Credit allocations and retirements?

How are Capital Credits disbursed?

What happens to a member’s Capital Credits if they move off of Tri-County lines?

What happens to a member’s Capital Credits if the member dies?

Why does the co-op not charge lower rates instead of retaining Capital Credits?

Unclaimed Capital Credits