We are pleased to let you know that Eastern Illini Electric Cooperative is returning (retiring) more than $1 million in capital credit to members, via checks, during the month of November. Capital credits are one of the many benefits of co-op membership. Capital credits allocated from 1986 – 1988 will be returned to those who were members during those years. As of 2017, Eastern Illini Electric Cooperative has retired over $15 million in capital credits to member/owners.
What are capital credits?
As a not-for-profit electric cooperative, Eastern Illini Electric Cooperative, is owned by member/owners who receive electricity from EIEC. Capital credits are your equity, or ownership, in the cooperative.
Any profits made by Eastern Illini are referred to as margins. Margins result when our revenue is more than our expenses. At the end of each year, any available margins are allocated back to you, our member/owners, into your capital credit account. Eastern Illini, like all electric cooperatives, operate at cost, collecting enough revenue to run and expand the business, but with no need to raise rates to generate profits.
When will I receive capital credits?
Each year we send out a capital credit allocation notice so you are aware of your equity. We will soon begin sending out capital credit checks to member/owners that received electricity from 1986 – 1988. By utilizing the capital credit allocations, we can lessen the need to raise rates or borrow money to pay for the infrastructure.
What’s the difference between allocation and retirement?
Allocations are made annually for each member, based upon the amount of electricity purchased the previous year. An allocation is the amount set aside into a separate account to be used as operating capital for reliability improvements and maintenance over a period of years. Retirements refer to the portion of the capital credits allocation to member/owners that is refunded nearly every year, depending on the financial condition of the cooperative. Typically, after utilizing capital for up to 30 years, it is retired.
Are capital credits retired every year?
Each year, your Board of Directors decides whether to retire capital credits based on the cooperative’s financial health. EIEC’s ability to retire capital credits reflects our strength and financial stability.
What happens to my capital credits if I move?
Your capital credits remain on our books until they are retired. That’s why it’s important to keep us informed about any change of address. There are many former member/owners of Eastern Illini for whom we don’t have current addresses. We’d like to be able to get them their capital credit payments, so we’ve set up a database on our website to try to locate them. Visit eiec.org/your-account/unclaimedcc-search and search by last name.
What if a member is deceased and has unretired capital credits?
Special retirements of capital credits can be refunded to a member’s estate upon the death of a member. Instead of waiting for a general refund, an estate can request capital credits be refunded early at a discounted rate.
Can I use the capital credits I have allocated to pay my electric bill?
No. Capital credits have no cash value until they are retired and refunded to you.
Do I have to claim capital credits as income on my tax return?
Capital credits are typically tax free if the property served was used as a residence. If the location served was used for business purposes, please consult a tax professional.
If you, or anyone you know, received electricity from Eastern Illini in the 1970s and/or 1980s, please visit the unclaimed capital credit database and search by last name: eiec.org/your-account/unclaimedcc-search.
If you think you might be on the list, contact us at 800-824-5102 or email email@example.com