Key Facts About Capital Credits
Matanuska Electric Association, Inc., is organized as a non-profit cooperative. At the end of each year, the Association determines the amount left after all expenses have been paid. This amount is called the "margin." The margins are divided, or allocated, among all members based on the charges for electrical service to each member during the year. The assigned margins are called capital credits.
Between the time capital credits are assigned to individual members and the time they are paid, the money is used by the Association to maintain and improve lines and other facilities. This enables the Association to reduce the amount of funds it needs to borrow, which keeps rates lower than they would otherwise be. Here are a half-dozen other key facts about capital credits:
1. Subject to financial conditions, some capital credits may be retired, or paid back, to the members each year.
2. Annual capital credit retirements are first applied to any balance a member may owe which is delinquent or has been written off. Any capital credit balance remaining is returned to the member.
3. Each year you will receive a notice showing the total amount of your capital credits account. This notice should be saved, along with other important documents.
4. If changes occur in the ownership of a business, MEA must be notified to update the record and assign a new membership number. Failure to do so could result in capital credits being allocated or paid to former owners of a business or to a dissolved company.
5. MEA must also be notified of changes in joint memberships, or changes which occur due to marriage, divorce, separation or death. Failure to do so could result in capital credits being paid to an incorrect individual or sent to an incorrect address.
6. If a member leaves our service area, his or her capital credits remain on the booksuntil their capital credit allocations are paid back in full. It is important that former members keep MEA informed of address changes.