Trustees Retire Almost $1.2 Million in Capital Credits

Unlike investor-owned utilities, which are for-profit companies accountable to shareholders, rural electric cooperatives like Victory Electric are owned by the people we serve. Because you are a member-owner of Victory Electric, you have a share in our ownership and success. 

After reviewing the cooperative’s financial health this year, the Victory Electric Board of Trustees authorized the retirement, or return, of $1,187,367 worth of capital credits. Since 2019, Victory has retired more than $8.9 million in capital credits. 

Victory Electric is a not-for-profit cooperative whose trustees set rates to cover costs, debt payments and emergency reserves. When the revenue collected during the year is greater than the cooperative’s operating expenses, Victory Electric allocates the balance — called margins — to member-owners. Members receive a share of the margins in the form of capital credits. 

Capital Credits Allocation and Retirement 

Capital credits allocations are based on member-owners’ rate class and the amount of electricity they purchased during the previous year. Victory Electric retains allocations of margins and uses them to maintain reliability, upgrade facilities and invest in system improvements. This operating capital helps support the cooperative through rapid industry changes and advances.

When the board retires capital credits for a period in which you received an allocation, you receive a capital credit refund and your cooperative equity decreases. Retired capital credits appear on the December bill as a bill credit for current members who had an allocation in the years being retired. Former members who no longer receive electric service from Victory Electric and were allocated $50 of capital credits or more in the years being retired will be issued a check. If past retirements didn't total $50, those amounts will be added to this year's retirement until the total reaches $50 or more, then a check will be issued.

Unclaimed Capital Credits 

Your capital credits allocations stay on record with Victory Electric even after you leave our service area. When we are unable to deliver capital credits refund checks to former member-owners, those funds go into an Unclaimed Capital Credits account. Check the list at https://victoryelectric.net/what-are-capital-creditsto see if you recognize any names.

• If your name or someone you know appears on the list, call 620-227-2139 with updated contact information.
• Successors of deceased individuals whose names appear on the list should call for instructions and required paperwork.
• Please keep your address current and notify Victory Electric of any changes to your contact information so that you will receive future refund checks when capital credits from your allocations are retired.

Capital credits are among the many benefits of your membership in a cooperative. The cooperative difference means we are able to focus on meeting member-owners' needs rather than on maximizing profits. This holiday season, we are thankful for your continued support of our community-focused co-op. 

From your friends at Victory Electric, we hope you have a bright, blessed holiday season.