CAPITAL CREDITS

As a non-profit electric cooperative, BENCO Electric Cooperative allocates operating margins, or profits, to members receiving service throughout the year. These margins are allocated using a proportional ratio and are called Capital Credits. This is one advantage of cooperative membership.

Capital Credit payments are made to members in March of each year. For current members, payments may be sent as a check or placed as a credit on your electric bill. Capital Credits are issued to former members through a check.

To maintain reliable electric service and low rates, margins are used for 20 years to help build BENCO’s electrical system. BENCO’s goal is to use a 20-year rotation cycle to return Capital Credits. For example, if a member received electric service in 2005, the member would receive a capital credit check for that year in 2025, subject to approval by the Board of Directors.

If margins were returned immediately, outside financing and higher rates would be necessary to maintain sound financials. The margins assigned to members as Capital Credits are an investment in keeping BENCO a reliable, safe and efficient organization.

Once Capital Credits are assigned to a member, they remain with the member. Former BENCO members should continue updating their address with the Cooperative. This will enable BENCO to forward payment when capital credits are refunded for the years of your membership.

UNCLAIMED CAPITAL CREDITS

Do you have unclaimed capital credits? Find out here.

CLAIM CAPITAL CREDITS

Claim capital credits by completing the Estate Application for Capital Credits.

Please note, upon receipt of required documents, the heir will have a choice of the following:

  • Option 1: Capital Credit payments will be made on a normal retirement basis, as if the decedent were still living. Under the present policy, it would be approximately 20 years for the Original Value of Capital Credits to be issued.

  • Option 2: The Capital Credit Present Value (discounted rate) would be paid upon approval of the BENCO Electric Cooperative Board of Directors.

Please note original / notarized documents must be received in BENCO’s office to process the application.

Please contact our office at 507-387-7963 with any questions.