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How would you like to receive a check from your electric company just for being a customer? You can if you are a member of Platte-Clay Electric—because members own a co-op.
Every year Platte-Clay issues hundreds of thousands of dollars back to its members in the form of what is known as capital credits. This is your share of equity in the co-op.
The 2009 unclaimed capital credit list is here.
You may download it as a xls file here.
The following Q and A section will help explain the capital credit process.
What are capital credits and why do I receive them as a co-op member?
As a nonprofit electric utility, Platte-Clay needs only to cover the cost of yearly operations. Any capital over and above that cost (net profit) is collected and allocated back to our member-customers.
As a co-op member, you share in the profits of your cooperative. The longer you use the service, the more monetary equity you accumulate. We call this equity allocations, which is the total sum of annual capital (equity) accrued by the member during their prior year or years of service with Platte-Clay. Allocations are similar to, but not the same as, dividends earned by shareholders of an investor-owned company. The actual cash amount (refund) each member receives back is determined by the cooperative Board of Directors and is usually a percentage of your total allocation amount from a previous year of service.
Who is eligible to receive a capital credit refund?
If you are currently a member or were formerly a member of Platte-Clay Electric Cooperative, you are entitled to receive a capital credit refund as part of your membership agreement. For that reason, it's important that everyone involved with the membership have their name on the account and that your address, if you move out of the area, is kept current at Platte-Clay.
When will I receive a capital credit refund?
Capital credit checks for more than $5 are distributed at the annual meeting. Members who do not attend the annual meeting will receive their capital credit check, for amounts more than $5, by mail. Capital credit checks may only be given to the member whose name is on the acccount.
Because all members and former members are eligible to receive capital credits, it is necessary to properly budget for this expense. Each year, the co-op Board of Directors approves a percentage of a prior year's allocations for repayment to the membership. By refunding only a portion at a time, the co-op is able to maintain a stable financial structure.
Why does the co-op hold capital credit allocations?
Platte-Clay holds allocations for the following reasons:
- to maintain adequate cash flow to meet current expenses
- to preserve enough equity in the company to meet banks' debt-to-equity requirements and lower the co-op cost of borrowing money
- to reinvest millions of dollars in system improvements, new services and the capital budget
How much does Platte-Clay actually refund to members?
Each year over the past few years, Platte-Clay has refunded more than $1 million to members. This total refund amount represents 50 percent of Platte-Clay's operating margins. Platte-Clay will continue to use 50 percent of its annual operating margins (net profit) for capital credit refunds. The remaining 50 percent will be reinvested into the cooperative and returned to members in the normal retirement cycle.
What was the change in policy regarding capital credits and what does it mean to me?
Until the year 2000, all allocations were held by the co-op for a 20-year term in order to maintain adequate cash flow and financial stability. This meant that members had to wait 20 years before they could receive a capital credit refund.
However, in early 2000, the Board of Directors decided that disbursement of capital credits should be more timely for all members and chose to change that policy by refunding a percentage of a current and prior year of service. As a result, most members now are eligible to share in this benefit without having to wait. This policy now is standard operating procedure and will continue in the future.
I received a financial statement from Platte-Clay in the mail, what is it and what does it mean?
Each year, Platte-Clay issues every member and former member a statement outlining the total amount of monetary equity their account has accumulated during the prior year of service. This is called an allocation statement and is sent as a courtesy so that members are informed of their vested interest in the co-op.
The following terms and definitions will help explain how to read an allocation statement.
Allocations: the total sum of annual capital accrued by the member during their prior year of service with Platte-Clay. Can also be viewed as your share of equity in the cooperative.
Refund (Retired Amount): the actual percentage of your allocation (accrued amount) approved by the co-op Board of Directors for repayment to the membership.
If I move out of Platte-Clay's service area, what can I do to ensure I receive a capital credit refund?
If you are currently a member and have plans to move out of the Platte-Clay service area, you need to make sure our finance office has your Social Security number and a forwarding address. This will allow us to send a yearly allocation statement notifying you of your entitled amount and a check when it comes due.
What if I had a joint account and am now divorced or separated? Do I still receive a refund?
If you previously had a joint account with another person through marriage or other living arrangements, you are entitled to make a claim. The first party to make the claim will receive the check. That person is then responsible to give half of that amount to the other member listed on the account if they know their whereabouts. Platte-Clay will not be held responsible or liable for difficulties resulting from the failure of one party to notify the other.
How may I check to see if I have unclaimed capital credits?
Platte-Clay is required by its bylaws to publish a list of all unclaimed capital credit refunds in a newspaper of general circulation. This list is usually published in the October edition of the Platte County, Liberty, and Northland editions of the Kansas City Star's Neighborhood News insert.
Members have sixty (60) days from publication of this list to make a claim. If no claim is made after the 60 day period, the unclaimed funds are considered donations to the co-op for use in paying future capital credit claims.
If you suspect you may have unclaimed capital credits with Platte-Clay, please check our online database below. If your name appears on the list and you would like to claim your refund, please send an e-mail to customerservice@pcec.coop. Be sure to include your name, account number, current address, and telephone number in your correspondence.
If you are a former Platte-Clay member and would like to make a claim, be sure to include your name, telephone number, the address from the residence at which you received electric service from Platte-Clay and the years you occupied that residence.
For all other questions or inquiries, please call our offices at (816) 628-3121.
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