What do co-ops do with capital credits when they aren't retired?
Electric utilities are capital-intensive businesses requiring large investments in equipment. Like all businesses, Berkeley Electric must maintain a balance between debt and equity to ensure financial stability. Capital credits are a significant source of equity and help to fund the growth and maintenance of the system.
During periods of fast growth, like what has recently been occurring in Berkeley’s service territory, a large amount of cash (or equity) is needed to build our system. To fund this growth, Berkeley has to borrow money from banks, re-invest member capital, or in some cases, do both. By re-investing your capital credits, Berkeley can keep rates competitive by reducing the funds that must be borrowed from other sources.
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When do capital credits get returned?
As a not-for-profit cooperative, our margins are allocated to our members every year. Allocation means the funds that you have invested in the cooperative are tracked, but not accessible in the form of cash. The actual distribution of funds, or ...
What are capital credits?
As a member of Berkeley Electric Cooperative, you are also an owner. When you make a payment to Berkeley Electric, a portion of that payment goes directly toward your "capital" investment in our electrical system. Unlike investor-owned utilities that ...
Do I have unclaimed capital credits?
The Cooperative maintains a list of unclaimed capital credits. Please check the following database to determine if any of these credits belong to you. If you find your name listed, please call 843-899-9120 for more information on how to claim the ...
What if I move? Am I still eligible to receive my capital credits?
If you move out of our service territory, please keep us informed of your new address so we are sure to contact you regarding future capital credit refunds. To report your current address for future capital credit refunds, please email our Member ...
Who gets a capital credit refund?
Every member who bought electricity from Berkeley Electric Cooperative during the years of service that are being retired.