Facts about Capital Credits

What do I have to do to start accumulating capital credits?

Capital credits are calculated by Callaway Electric for every member who purchased electricity during a year in which the cooperative earned margins. No special action is required to start a capital credit account. Your membership activates your capital credit account.

How are capital credits calculated?

The amount of capital credits you earn in a given year is based upon the amount of capital you contribute to the cooperative through payment of your monthly bills. The more electric service you buy, the greater your capital credits account - although the percentage will remain the same. The sum of your monthly bills for a year is multiplied by a percentage to determine your capital credits.

Will I receive a capital credit check every year?

Not necessarily. The Board of Directors must authorize a retirement before you receive a check. When considering a retirement, the Board analyzes the financial health of the cooperative and will not authorize a retirement if the financial condition will not allow it.

What happens to my capital credits if I leave Callaway Electric's service area?

They would remain on the books in your name and member account number until they are retired. Because payments are made 15-20 years after capital credits are earned, you should keep Callaway Electric informed of your current mailing address.