More unclaimed Capital Credits will return to the communities we serve
This month, CoServ will retire $16 million in Capital Credits, the largest retirement in the co-op’s 86-year history. For eligible current Members, this will appear as a credit on their August electric bill.
Anytime CoServ retires Capital Credits, there’s a portion of that money that is never claimed either because the Member moved and didn’t update their address or the check is never cashed.
This month, former Members who had service between 2003 and 2022 will receive a check in the mail at the last known address on file. If a Capital Credit check is returned, CoServ will not mail any more checks to that address. Former Members can update their address by emailing us at [email protected].
So, what happens to the unclaimed funds?
Historically, the majority of the funds were escheated back to the state, where they are kept on file for people to claim in the future. CoServ and other electric co-ops received a share of $2 million and those funds were earmarked for education, usually scholarships, energy efficiency grants and economic development projects. Statewide, the amount co-ops could claim was capped at $2 million each.
The problem was, as CoServ added more meters, we sent more money back to the state and were only able to keep the same small portion.
However, a new law passed by the Texas Legislature allows CoServ to return more of this unclaimed money back to the communities we serve.
The 2023 Texas Legislature passed House Bill 4246, which allows electric co-ops to keep half of the unclaimed funds. CoServ supported the bill and urged lawmakers to approve it during the session earlier this year.
It passed the Senate unanimously and was signed by Gov. Greg Abbott.
The money is still earmarked for education, energy efficiency and economic development programs -- CoServ will just have more money to use for these purposes each year.
“Capital Credits belong to our Members, past and present, and are one of the biggest advantages to belonging to an electric cooperative,” said Ken Turner, Director of Finance. “With this new law, we’ll be able to return more of these unclaimed funds back to the communities for worthwhile projects and causes.”
Also, people can still claim their money at any time by going to the state’s website. To see if you have any unclaimed money, visit claimittexas.gov.