Unclaimed Capital Credits
Carroll EMC is looking for Members who have unclaimed capital credits with our not-for-profit electric cooperative. We would like to find a current address and refund these capital credits if possible. If your name is on the list, or if you have an accurate address for anyone on the list, please call Carroll EMC during regular business hours at (770) 832-3552. You will be required to provide proof of identity to claim ownership (this could be a valid Driver's License, passport or other state-issued photo identification card).
What are capital credits?
Capital credits represent each Member-owner’s share of Carroll EMC’s margins, or operating income (operating revenue remaining after operating expenses).
- Why is the co-op allowed to show a “profit”?
- We are required by our lending institutions to meet certain financial requirements to show that the cooperative is financially stable. However, all margins are allocated back to Member-owners.
- How is my share determined?
- The amount designated to each Member–owner is based on your energy purchases for the year. To calculate this, the co-op divides a Member’s energy purchase by the cooperative's operating income for the year. The more electricity you buy, the more capital credits you earn. For example, to approximately calculate capital credit refunds based on years 1991 and 1992, take your total payments for 2011 minus sales tax and multiply them by .039125 for 1991 and .01823 for 1992 and add them together.
- Why can’t rates be lower instead of refunding money?
- During most months of the year, Carroll EMC receives more cash from operations than is necessary to pay for operating expenses. However, the cooperative also needs cash for servicing its debt (payments of principle and interest on money the cooperative has borrowed) and to pay for capital expenditures to improve and maintain the reliability of the electricity delivery system.
- When are capital credits issued?
- The distribution of capital credits and its effect on the financial wellbeing of the cooperative is an issue your board of directors deals with each year. It is the policy of the cooperative and the discretion of the board to return capital credits as long as the cooperative is financially fit to return them without additional borrowing or the need to raise rates to pay capital credits.
- Is my capital credit allocation/retirement taxable?
- We suggest that you seek the advice of a tax professional for any specific questions regarding taxation.
- Why did I receive multiple checks?
- Capital credit retirement checks are mailed to accounts based on the exact name and last known mailing address of each Member-owner. In some instances, Members may have closed an account and then reopened a new one with a name variation. The variation is treated as two separate accounts in our system. Issuing individual checks helps to ensure that each Member who should receive a check does. For accounts with identical information, the allocation for each year and for all accounts were combined into one total.
- The check is made to me and my spouse who is now deceased. Can I cash it?
- In the event that you receive a joint check and your spouse is now deceased, you may cash it. The law presumes that assets held jointly by a husband and wife are held by the entirety with right of survivorship.
- I am divorced, and the check is made to me and my former spouse. Who gets the money?
- Joint checks written to spouses who are now divorced cannot be negotiated without the agreement of both spouses on how the funds will be divided. Both will need to endorse the check, and if the check is negotiated with a false endorsement or forged signature, criminal prosecution could result.
- The check is made to a family member who is incapacitated or died without a surviving spouse. Who should cash it?
- The check should only be cashed by the person who is legally entitled and legally able to cash it. Please seek legal advice if you need further guidance.
- What if I want to donate my capital credit check to Operation Round Up?
- If you would like to donate your capital credit check to Operation Round Up, Carroll EMC’s Member-funded program that provides financial assistance to community organizations, individuals in crisis situations and college scholarships, simply endorse your check and return it to Carroll EMC.