Capital Credit Retirement for Estates
Special notice for the executors of estates of former CoServ Members
Capital Credits are a major benefit for Members of an electric cooperative. Allocations of margins are made based on energy purchases and, at the discretion of the CoServ Electric Board of Directors and under certain financial conditions, a portion of these Capital Credits may be retired (paid) to Members.
Because we understand the difficulties faced after the death of a loved one, the CoServ Electric Board of Directors has voted to immediately retire all remaining Estates Capital Credits. The enclosed check is a final lump-sum payment of the CoServ Capital Credits.
The 2023 Capital Credit Retirement for Estates will follow the same process as this year’s general retirement, meaning that CoServ Capital Credits allocated for the years 2003 – 2005 are being retired at 100 percent. For CoServ Capital Credits allocated from 2006 through 2023, CoServ Electric is paying 100% of the Capital Credits at the net present value*, as opposed to waiting to pay the face value of these Capital Credits at the end of the current retirement cycle, which is 18 years.
If you have further questions or would like to donate this Capital Credit retirement to the CoServ Charitable Foundation, please email us at [email protected].
*This figure is based on a discount period of 18 years and a discount rate of 5.18%. The CoServ Electric Board of Directors establishes the discount period and discount rate in accordance with CoServ Electric’s bylaws and policies.