Capital Credits

Do Heartland members get money back from the cooperative?

YES!

Each year Heartland Rural Electric Cooperative can send out hundreds of thousands of dollars in Capital Credit Retirements to the members. 

Heartland Rural Electric Cooperative is a non-profit electric utility, which means the co-op is owned by those it serves & not by private investors.

What are Capital Credits and why do I receive them as a co-op member?

Revenue collected from members is called Patronage. As a non-profit electric utility, Heartland needs only tocover the cost of yearly operations. After meeting the cooperative's financial obligations, margins, if any, are allocated to the members as Capital Credits.

As a co-op member, you share in the margins of Heartland. The longer you use the service and the more service you use, the more monetary equity you accumulate. The actual cash amount (retirement) you receive is determined by the cooperative Board of Directors and is usually a percentage of your total usage amount.

Who is eligible to receive a Capital Credits?

If you receive service from Heartland Rural Electric Cooperative, you are eligible to receive capital credits, as part of your membership agreement.

When will I receive my share of Capital Credit retirements?

Each year, the Board of Directors approve the portion of Capital Credits to be retired. Because all members and former members are eligible to receive capital credit retirements, it is necessary to properly budget for this expense. By retiring a portion at a time, the co-op is able to maintain financial stability while demonstrating a key benefit of cooperative ownership to its members..

How does Heartland use allocated Capital Credits?

The Co-op uses allocated Capital Credits for the following:

• 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 Heartland refund to its members?

Over the years, Heartland has retired millions of dollars in Capital Credits.

Was there a recent change in policy regarding Capital Credits and what does it mean to me?

Until recently, 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 waited 20 years before they could receive retired Capital Credits.

In 1999, the Board of Directors decided that retirements of Capital Credits should be more timely for all members and chose to change that policy by refunding a percentage of the most current and prior years of service. As a result, new and existing members are eligible to share in the benefits of Capital Credit retirements.

I received a Capital Credit statement from Heartland in the mail, what is it and what does it mean?

Each year, Heartland-REC issues every member and former member a statement outlining the total amount of monetary equity their account has accumulated during the prior years of service. This is called an allocation statement and is sent as a courtesy so that you my be kept informed of your vested interest in the co-op.

If I should decide to move, 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 Heartland-REC service area, you need to make sure our office has your forwarding address. This will allow us to send you a yearly allocation statement notifying you of your entitled amount and a check when it comes due.

How can I check to see if I have unclaimed Capital Credits?

Unfortunately, many members leave our service area without leaving us their forwarding address. As a result, we are unable to contact them when their checks have been processed leaving thousands of dollars in unclaimed Capital Credits retirements each year.

Heartland-REC is required by law to publish a list of all unclaimed Capital Credit retirements in a newspaper of general circulation. This list is usually published in the The Heartland Heartbeat Quarterly Newsletter.

If you suspect you may have unclaimed Capital Credits with Heartland or you are making a claim on behalf of a deceased individual, you need to call our office and speak with a customer service representative: (620) 724-8251.