What are Capital Credits?
As a member of an electric cooperative, you invest in CoServ Electric through your kilowatt-hour purchases. Each year, any margin (profit) earned by CoServ Electric is reinvested in the cooperative. At the same time, the value of the margin is proportionally allocated (based on electric purchases during the year) and recorded to Capital Credit accounts for each of our current members (customers). These accounts are maintained until the credits are retired (paid) in full.
Can my Capital Credit allocation be applied to my current CoServ bill?
No. Your Capital Credits are allocated to an account maintained in your name. They provide equity needed for CoServ Electric to conduct business and meet our financial obligations. That’s the cooperative business model.
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. Each year, the Board reviews company finances and decides whether to retire (pay) Capital Credits and if so, how much. When approved, the retirement usually happens in December. Since 2003, CoServ has retired more than $100 million in Capital Credits.
How is my Capital Credit allocation calculated?
We take the total allocable margins for the year (excluding Power Supply) and divide it by the total patronage of all members. Each member's annual total patronage is multiplied by this number to determine their CoServ Capital Credit allocation.
What is the Power Supply Capital Credit allocation?
"Power Supply" refers to our generation and transmission (G&T) provider. 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 members, 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. When we receive payment from Brazos to retire (pay) any portion of the Power Supply allocations, we retire the corresponding Power Supply allocation to you.
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. 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 Capital Credits.((Need to update your address? All you have to do is email us at contact@coserv.com.)
How do I donate my Capital Credits to the CoServ Charitable Foundation?
Capital Credits might seem like small change to new members and to some former members. That's because Capital Credit payments are based on the amount of electricity you purchase over the course of a nearly 20-year cycle. For example, in 2017 a 16-year member living in a 2,000-square-foot house received a Capital Credit payment of $52.52. When you donate your Capital Credits to the CoServ Charitable Foundation (CCF), every penny goes to someone in need through worthy, local nonprofit agencies. Donate your Capital Credits here,or go here to learn more about CCF.
What happens if I am no longer a CoServ member or if I am the executor for a CoServ member?
As a former member, you are entitled to share in the margins of the cooperative for the period of time you received service from CoServ Electric, which can be retired (paid) for more than a decade after you close your CoServ account. If you are a former member or executor and have not received a statement in the mail, please chat with us.
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.