“What is a Capital Credit?”

Capital Credit balances represent the members’ share of distributed profit margins to all members of CNMEC in any given year. These balances accumulate until the board of CNMEC authorizes a retirement distribution of those year(s) of allocations. The board of CNMEC has retired all allocation years up to and including 1983. 

“Why do I get Capital Credit allocations and how did I earn them?” 

Members receive an allocation in their Capital Credit account because of being a member and having electrical service with CNMEC. 

“Is a Capital Credit Allocation statement a bill?"

Capital Credit notices are not bills. “ THIS IS NOT A BILL” is printed on the front of the statement. This is an annual, updated balance of your allocations on file with CNMEC. 

“What if I move or no longer live where I had service, am I still entitled to a check?”

Yes, Capital Credits are a lifetime benefit to the member, not the service location, so checks are mailed to the member at any current address at the time of retirement.

“What happens if I will not live enough to receive a retirement distribution or want to transfer this balance?"

Capital Credits are part of a member’s estate and can be transferred to other relatives or representatives of the member’s estate. Please refer to the Capital Credits forms section of the CNMEC website for the Affidavit of Authority, which reassigns the account to other executors of the member’s estate.

“How often will I receive a statement of my Capital Credit balance?”

We are required to send out some type of notification each year that CNMEC has positive margins (ie profits). This generally happens in July of each year. 

“How can I ensure that I continue to receive CC statements and distribution checks? 

If a member moves out of the cooperative service territory or changes their present address, they should notify the cooperative as soon as possible to avoid delays or disruptions in receiving future retirement distributions. 

“Can you explain or define some of the information on the Capital Credit statement?”

ALLOCATION- Capital assigned (revenues less expenses) to members’ capital credit numbers based off of total billing in the related capital credit year.

RETIREMENT - Capital given back to members in the form of a retirement distribution check. Generally, checks are processed in December of each year. 

UNRETIRED BALANCE - The balance of capital that a capital credit number has accumulated in CNMEC

TOTAL BILLING

The total billing shows the total amount this account has billed in the year indicated. Capital credits (revenues in excess of expenses) are allocated based upon the total dollar amount (less sales tax) purchased for electric service.

CNMEC VERSUS G&T ALLOCATIONS

The 2024 Mailing has two sections on the notice, one is for the CNMEC (COOP) allocation and the other is for the Generation and Transmission (G&T) allocation, which is the Tri-State portion. Both are the result of positive margins, which are passed on to the members.

UNRETIRED ALLOCATIONS

CNMEC has retired capital credits allocations for all years up to 1983. If a member has service that started for any year after 1982, they would not have received a retirement distribution yet.