What are capital credits?

As a member-owned Cooperative, Holmes-Wayne Electric is committed to operating the Cooperative to provide the best service at the lowest possible cost. We sell and deliver electricity to our members at cost plus a small margin. It is necessary to collect a small margin in order to provide working capital. We use margins to maintain the electric distribution system, to build and upgrade lines, and to provide service to new members.

However, because we are a nonprofit Cooperative, we eventually return these margins to the members. These are called capital credits.

Capital credits are returned to each member based on patronage. They are divided among the members according to the amount of power purchased by the member; so, the more power you buy, the higher your share of capital credits.

Your member-elected board of trustees oversees the financial well being of the Cooperative. As the financial status of the Cooperative permits, the board will decide to “retire” some capital credits.

When these capital credits are retired they are returned via a check to current members, and via check to former members no longer on our lines. This is one reason why you always should keep your Cooperative apprised of your address if you move off of Holmes-Wayne Electric’s lines: you may have money coming to you that you have forgotten about!

Money returned in June 2008

Holmes-Wayne Electric Cooperative’s most-recent retirement of capital credits was for the year 1987. $823,648.69 in captial credits is being returned to the members of Holmes-Wayne Electric. If you are a current member of Holmes-Wayne and were a member during 1987, you should have received a check in June 2008 for the amount of your capital credits for 1987..

If you were a member of the Cooperative during 1987, have moved off our lines and you did not receive a check (the minimum amount returned is $10.00) please contact Vicki Bilek at the Cooperative office at 866-674-1055.

Estate information

At the present time, capital credits are returned on a pro-rated “present day value” basis to the estates of deceased members. If you are the executor of the estate for a deceased member of the Cooperative, please contact the Cooperative office to arrange for the return of the member’s capital credits. If the estate is “open” you will need a copy of the death certificate and a copy of the appointment (documentation that shows you are the executor of the estate). If the estate has been closed, you need only the death certificate. For more information, you can contact Vicki Bilek at 866-674-1055 or vbilek@hwecoop.com

2007 Allocation

As a member-owned Cooperative, Holmes-Wayne Electric is committed to operating the Cooperative to provide the best service at the lowest possible cost. We sell and deliver electricity to our members at cost plus a small margin. It is necessary to collect a small margin in order to provide working capital. We use margins to maintain the electric distribution system, to build and upgrade lines, and to provide service to new members. However, because we are a nonprofit Cooperative, we return these margins to the members. These are called patronage capital credits.

Capital credits are returned to each member based on patronage. They are divided among the members according to the amount of power purchased by the member; so, the more power you consume and purchase, the higher your share of capital credits.

Capital credits are assigned or "Allocated" to each member/owner for the prior year. Your member-elected board of trustees oversees the financial well being of the Cooperative. As the financial status of the Cooperative permits, the board will decide to "retire" capital credits. Currently, capital credits are being retired on the industry standard of a 20 year cycle. When these capital credits are retired they are returned via a check to current members, and via check to former members no longer on our lines. This is one reason why you always should keep your Cooperative apprised of your address if you move off of Holmes-Wayne Electric's lines: you may have money coming to you that you have forgotten about!

You also receive an "Allocation" of capital credits from our generation company, Buckeye Power, Also a cooperative, Holmes-Wayne Electric is a member/owner of Buckeye Power . Buckeye Power "Allocates" capital credits to Holmes-Wayne Electric based on the same principles. We, in turn, allocate these capital credits to you. You are notified annually of your "Allocation" of the capital credits assigned to your account for the prior year.

Please note in your July 2008 bill, the information regarding the "2007 Allocation" for both Holmes-Wayne Electric Cooperative and our generation company, Buckeye Power. You will only have “2007 Allocation” if you were a member of the Cooperative in 2007.