It Pays to Be a Member
As a member of Berkeley Electric Cooperative, you are also an owner. When you make a payment to Berkeley Electric, a portion of that payment goes directly toward your "capital" investment in our electrical system. Unlike investor-owned utilities that generate profits on behalf of shareholders, not-for-profit electric cooperatives return any profits, or margins, to their members in the form of capital credits.
-
Who gets a capital credit refund? Every member who bought electricity from Berkeley Electric Cooperative during the years of service that are being retired.
-
When do you return capital credits? Each year, Berkeley Electric's Board of Trustees evaluates how much to pay, taking into consideration such factors as the impact on electric rates and financial strength of the co-op. Capital credits may not be returned every year.
-
How is my refund amount determined? Your refund amount is based on the amount of electricity you used during the years of service that are retired.
-
How are the funds paid? Members receiving refund amounts of $20 or more receive a check in the mail; amounts under $20 are issued as a bill credit.
Capital Credit FAQs
As a not-for-profit cooperative, our margins are allocated to our members every year. Allocation means the funds that you have invested in to the cooperative are tracked, but not accessible in the form of cash. The actual distribution of funds, or retirement of capital credits, happens at the discretion of the board of directors.
At the end of each year, your board carefully assesses the financial condition of the cooperative and determines what amount of capital credits to retire to our members. Capital credits may not be retired every year. If the board decides to retire capital credits, anyone who was a member during the years retired will receive some type of credit.
Each year capital credit checks get issued incorrectly because members have not provided updated addresses or members pass away without the cooperative being notified. If you have received a check issued to a deceased member, to a joint account after a divorce, or other incorrectly issued checks, please contact member services by calling 1-800-327-9615. You may be required to provide proof of identity or legal documents to prove your representation to the estate or account.
-The Cooperative maintains a list of unclaimed capital credits. To determine if any of these credits belong to you please check the following database. If you find your name listed in the database please call 843-899-9120 for more information on how to claim the credits.
Berkeley Electric Cooperative bylaws provide for an early retirement of the capital credits of a deceased member to his or her estate. Representatives of a deceased member's estate must contact the cooperative and supply the necessary legal documents before a refund can be made. No early retirement of capital credits is allowed in the case of dissolution of a corporation or partnership. Under these circumstances, an assignment of the capital credits to another Berkeley Electric Coop member would be allowed with the proper documentation.
Upon the death of either spouse in a joint membership, the name of the deceased person is removed from the membership and the membership is then held solely by the surviving spouse. A joint membership is not eligible for an early retirement upon the death of one of its members.
If you move out of our service territory, please keep us informed of your new address so we are sure to contact you regarding future capital credit refunds. To report your current address for future capital credit refunds, please call our Member Services Department at 1-800-327-9615.
Electric utilities are capital intensive businesses requiring large investments in equipment. Like all businesses, Berkeley Electric must maintain a balance between debt and equity to ensure financial stability. Capital credits are a significant source of equity and help to fund the growth and maintenance of the system.
During periods of fast growth, like what has recently been occurring in Berkeley’s service territory, a large amount of cash (or equity) is needed to build our system. In order to fund this growth, Berkeley has to borrow money from banks, re-invest member capital, or in some cases, do both. By re-investing your capital credits, Berkeley is able to keep rates competitive by reducing the funds that must be borrowed from other sources.