What Are Capital Credits?
West Oregon Electric (WOEC) is a cooperative owned by its members; it does not technically earn profits. Instead, any revenue over and above the cost of doing business is considered “margins.”
- These margins represent an interest-free loan of operating capital by the membership to the cooperative.
- This capital allows WOEC to finance operations and construction.
- The intent is that this capital will be repaid to you in later years when the cooperative is financially able to do so.
Allocated & Retired Capital Credits
What is the difference between allocated capital credits and retired capital credits?
- Allocated capital credits appear as an entry on the permanent financial records of the co-op and reflect your equity or ownership in WOEC.
- Retired capital credits are when a check is issued to you, and your equity in the co-op is reduced.
Allocation Notices
How often will I receive an allocation notice?
You will receive a yearly allocation printed directly on your bill. This notice is sent after finances from the previous year have been audited.
Remember: this is only a record of the allocation, and that amount will be paid at a future date to be determined by the Board of Directors when the cooperative can afford to issue checks for payment of capital credits.
Accumulating Capital Credits
What do I have to do to start accumulating capital credits?
Capital credits are calculated by WOEC for everyone who purchased electricity during years that the co-op earned margins.
- No special action is required to start a capital credit account.
- Your membership with WOEC automatically activates your capital credits account.
Capital Credit Calculations
The amount of capital credits you earn in a given year is based upon the amount of capital you contribute to the co-op through payment of your monthly bills.
- The more electric service you buy, the more capital credit you earn.
- The sum of your monthly bills for a year is multiplied by a percentage to determine your capital credits.
The percentage of your total payment that is allocated as capital credits varies from year to year, depending upon the success of the cooperative.
- Capital credits are only allocated when WOEC earns margins.
- Since capital credits are a member’s share of the margins, no credits are allocated for a year without margins.
No. Capital credits are calculated based upon a member’s monthly bills. If you are billed for service for even 1 month, you will accumulate capital credits if WOEC earned margins in that year.
Using & Receiving Capital Credits
No. Allocated capital credits may not be used to pay current bills.
- Your electric bill is due now.
- You may not be entitled to be paid your capital credits for many years.
No. The board of directors must authorize a retirement before you receive a check.
- WOEC has only retired capital credits through the year 1969.
- When considering a retirement, the board analyzes the financial health of the co-op.
- The board will not authorize a retirement if WOEC cannot afford it.
Capital Credits After Leaving WOEC
What happens to the capital credits I earned when I leave the West Oregon Electric Cooperative service area?
Your capital credits will remain on the books in your name and under your member number until they are retired.
Please notify us if your address changes: (503) 429-3021 or email.
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