Capital Credits

Another $12 million in Capital Credits retired!

In 2017, the CoServ Electric Board of Directors approved the retirement of $12 million in Capital Credits for CoServ Electric Members. In December, CoServ began applying credits of $199.99 and below to Members' accounts. Retirements in amounts over $200 were mailed via the U.S. Postal Service.

As a Member of an electric cooperative, you build ownership in CoServ Electric through your kilowatt-hour purchases. There is no stock to be purchased or sold; you own the business. And when the cooperative has earned a margin, we allocate it to our Member-Owners. Capital Credits are a tangible benefit of belonging to an electric cooperative, and you can count on CoServ to offer fair pricing, value and satisfaction. Since 2003, $108 million in Capital Credit Retirements have been distributed to Members.

Frequently Asked Questions

What are Capital Credits?

Capital Credits represent your allocated share of the cooperative’s margins during the period of time in which you are a Member of the cooperative. Each year’s margins are allocated to Members based on the amount billed per Member for electric purchases and the associated gross margin during that year. This allocation is credited to a Capital Credit account maintained for each Member until the credits are retired (paid). Unlike electric utilities that generate margins on behalf of investors and shareholders, electric cooperatives sometimes return the margins earned by the electric cooperative to their members. Each year, any margins earned by CoServ Electric are reinvested in the cooperative. At the same time, the value of the margin is proportionally allocated (based on electric purchases during the year) to Capital Credit accounts maintained for each of our current Members.

When will I receive payment or credit on my Capital Credits?

Capital Credits are retired (paid) at the discretion of the CoServ Electric Board of Directors. Since 2003, CoServ has elected to retire more than $108 million in Capital Credits.

What is the CoServ allocation factor, how is it determined and how is my allocation calculated?

The CoServ allocation factor is the total allocable margins for the year (excluding G&T) divided by the total patronage of all Members and based on the gross margin generated by each Member. Each Member’s total patronage is multiplied by the factor to determine the CoServ Capital Credit allocation. Capital Credits are allocated to each Member based on the Member’s purchase of energy during the year and the gross margins generated by those purchases.

What is the G&T Capital Credit Allocation?

G&T stands for Generation and Transmission. CoServ Electric does not generate power but buys most of it from Brazos Electric Power Cooperative, Inc. (Brazos), which is a G&T co-op. CoServ Electric and other electric cooperatives in north/central Texas own Brazos. Just as CoServ Electric allocates its margins to our Member-owners, Brazos allocates its margins to the electric cooperatives that own Brazos. When CoServ Electric receives margin allocations from Brazos, it allocates those margins to you, and the allocations are kept separate from the CoServ Electric margin allocations. At the point CoServ Electric receives payment from Brazos to retire (pay) any portion of the G&T allocations, CoServ Electric will retire the corresponding G&T allocation made to you.

Can my Capital Credit allocation be applied to my current energy bill?

No. Your Capital Credit allocations for this year are new credits allocated to a Capital Credit account maintained in your name.

What happens to my Capital Credits if I move and terminate service with CoServ Electric?

Once you terminate service, you become a former Member and will no longer receive additional allocations. Your existing Capital Credit balance will be maintained in a Capital Credit account in your name until it is retired (paid) in full. When the CoServ Electric Board of Directors elects to retire (pay) Capital Credits in the future, a check will be mailed to the last forwarding address on record. (NOTE: It is the former Member’s responsibility to maintain a correct mailing address with CoServ Electric for the receipt of any future payments or information concerning your Capital Credits.)

What happens if I am no longer a CoServ Member or if I am the executor for a CoServ Member?

Please refer to the Former Member and Estate Executor letters here.

How do I claim Capital Credit Retirements from past years that are owed to me?

Fill out this Unclaimed Property Request form and submit it to the address listed on the form.