Capital Credits

What are Capital Credits?

  • Capital credits are retained margins left over at the end of a year at a not-for-profit cooperative
  • Since a cooperative’s owners are also the people the co-op serves, capital credits reflect each member’s ownership in the cooperative
  • This differs from dividends investor-owned utilities pay shareholders, who may or may not be customers of the utility
  • Municipal or investor-owned electric utilities do not refund capital credits
  • Only not-for-profit electric and water cooperatives owned by their members (like you) return these credits

When are Capital Credits Paid?

  • The Graham County Electric Cooperative, Inc. (GCEC) board of directors decide each year if capital credits are to be distributed
    • This decision is based on the financial health of the cooperative
  • During some years the co-op may experience high growth in the number of new accounts added, or severe storms may result in the need to spend additional funds to repair lines
  • Both events might keep members equity low, causing the board to defer any capital credit refunds

Members Will Not Lose Capital Credits

  • All capital credits from each year that members have been served by GCEC are maintained until such time as the board refunds them
  • Each year an “allocation” is calculated and allocation notices are sent to members using our services for that year

What Happens If I Move?

  • The best way to ensure that you receive the credits owed to you, is to keep your mailing address current
  • To check or update your current mailing address with us, please contact GCEC at (928) 485-2451 during normal business hours (Monday through Thursday, 7 a.m. to 5:30 p.m. excluding holidays)
  • Even if you are no longer a member of the cooperative, you will receive all capital credits owed to you as long as your mailing address remains current
  • To keep your address up to date, fill out the change of address form
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Members’ Economic Participation

Refunding capital credits expresses one of the 7 cooperative principles – Members’ Economic Participation

This principle states:

“Members allocate surpluses for any or all of the following purposes; develop the cooperative; setting up reserves; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.”

Capital Credits for a Deceased Spouse or Parent

How Do I Find Out If I Have Capital Credits?

  • As a convenience for our Members, this page of our website provides a searchable database of unclaimed patronage capital credits information as set forth in the Arizona Revised Statutes, Section 10-2071(E).
  • Please provide at least first or last name to search the database
  • If you find patronage capital credits that may be claimed please contact Graham County Electric at (928) 485-2451, extension 8664 to speak with a representative regarding your claim
  • Please be prepared to provide detailed information regarding your claim including nameaddressaccount numberdate of service, and other necessary information to verify your claim