Capital Credits (Member Dividends)

As an owner of Roanoke Electric Cooperative, Capital Credits (also called Member Dividends) belong to you - the member! You may be owed money - read on!

What are Capital Credits/Member Dividends?

• Roanoke Electric, a not-for-profit corporation, focuses on operating AT COST.
• As a result, any money made by the cooperative above operating costs is returned to the members.
• Your share of this money is known as capital credits or member dividends (we'll call them member dividends from here on out).

How are the amounts that I am owed determined?

Roanoke Electric uses specific formulas in determining member dividends. REC also works to ensure that it has enough money to maintain operations. We use something called an allocation factor to determine just how much members receive each year. That allocation factor can change from year to year. For example, in 2005, the allocation factor was 8.723818. Using that number, if your total electric bill for 2005 was $500, then your member dividends account would be credited with $43.61. This does not mean your banking or checking account. This is a specific member dividends account that all members are assigned.

How would I receive member dividends owed to me?

The Board of Directors determines when to give out member dividends based on the cooperative's financial condition each year. In the meantime, REC uses the money for operating and reinvesting in the cooperative.

• Patrons who are current members will automatically receive a credit on the electric bill.
• Patrons who are no longer members or who are inactive will receive a check. The check will be mailed to the most current address for you that we have on file. PLEASE KEEP YOUR ADDRESS CURRENT WITH REC SO THAT YOU CAN RECEIVE YOUR MONEY.

What if I've moved and the post office returns my check to Roanoke Electric? How do you handle unclaimed member dividends?

• Roanoke Electric will attempt to send your member dividends check TWO TIMES. If it is returned to us after this, your dividends will be considered UNCLAIMED.
• Every year, REC posts the names of members who have unclaimed checks. This posting is in the Roanoke Electric Flashes section of Carolina Country, our statewide cooperative magazine.

  You can also access this list here. To find out if you are owed capital credits/member dividends in 2006, click here.

• In order to claim your member dividends, you MUST fill out a REQUEST FOR UNCLAIMED CAPITAL CREDITS. The REQUEST FORM is provided below. You also must provide a copy of your valid driver's license or another valid picture ID. Once approved, a check will be mailed to you.

Click here for a copy of the REQUEST FORM (Word version).

Click here for a copy of the REQUEST FORM (Adobe Acrobat PDF version).

How do I make a claim for the deceased?

In order to claim dividends for a deceased member, you must have already qualified legally as a representative for the estate. You must provide legal documents to Roanoke Electric Cooperative showing proof that you have qualified.