Frequently Asked Questions About Capital Credits
Below are answers to anticipated questions you may have about your capital credits check. We hope that if you have any questions, they will be answered below. If not, you are welcome to call the cooperative’s office. Please note that we are expecting a high call volume in the next few weeks and appreciate your patience. We will do our best to answer any additional questions you may have in a timely fashion.

Capital Credits Claim Form

What are capital credits?
At the end of each year, after all of the cooperative’s bills have been paid and all expenses considered, the amount of money that is left over is called a margin. Margins provide equity for the cooperative and are allocated to the members in proportion to their purchases of electricity during the year. Capital credits are your share of the margin. Capital credits are allocated annually to each member and are retired in accord with the cooperative’s bylaws.

What’s the difference between allocating and retiring capital credits?
Each year, capital credits are allocated to each member and recorded in the books of the cooperative. Capital credits are retired or paid to members after the Board determines that the financial condition of the cooperative will not be impaired thereby. Capital credits may be retired in full or in part, and the manner, method and timing is determined by the Board.

Why did I receive this check?
White River Valley Electric Cooperative (WRVEC) members that received electric service from the cooperative during the years 1950 through 1980 as well as during the years 2007 and 2008 will receive a capital credits check. Our records indicate that you are eligible to receive the enclosed capital credits check. If you received the check and believe it to be in error or if you are not the person to whom the check is written, you must return it to the cooperative. Failure to do so may result in prosecution, especially if you place a false endorsement on the check.

I didn’t think electric cooperatives were supposed to make 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 our membership.

Is my capital credit allocation/retirement taxable?
We suggest that you seek the advice of a tax professional for any specific questions regarding taxation.

How did you determine the amount of my check?
WRVEC is retiring (returning) a total of approximately $10 million to the membership. This amount equals a portion of the cooperative’s 2007 and 2008 capital credit allocations as well as 100 percent retirement of allocations for the years 1950 to 1980. This check represents your share of those retired capital credits for those time periods.

When will 100 percent of the capital credits allocated to me be retired?
Each year the decision to retire capital credits is made based on the financial stability of the cooperative. The Board, in its sound discretion, selects the manner, method and timing of retiring capital credits.

Why did I receive multiple checks?
Capital credit retirement checks were mailed to accounts based on the exact name and last known mailing address of each member. 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.

Why did you send me a check for such a small amount?
Every member who received electric service from WRVEC during the years 1950 through 1980 as well as during the years 2007 and 2008 will be issued a capital credits retirement check. In some instances, the member only received service from the cooperative for a short period of time.

What impact will this check have on my electric bill?
The retirement of capital credits does impact the finances of the cooperative and may impact future electric rates.

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. If the person to whom the check is made is incapacitated, then consider whether someone has a valid durable power of attorney for that person or is a court ordered conservator. If a probate estate has been opened for the person to whom it is written, then the check should be brought to the attention of the probate court. Consider seeking legal advice if you believe acceptance of the check may result in disqualification for public benefits or if you need further guidance in this area.

What if I want to donate my capital credit retirement check to Operation Round Up?
If you would like to donate your capital credit retirement check to Operation Round Up, WRVEC’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 WRVEC.

How may I contact White River Valley Electric Cooperative to speak with someone about this matter?
We are anticipating that the cooperative will experience a heavy call volume once capital credit checks are received by the membership. Your patience is appreciated. We will return all calls and inquiries on a first come, first served basis. If you have questions regarding your capital credit check, please contact the Billing Information department 1‐800‐477‐6408 or e‐mail info@whiteriver.org.