Capital Credits

Capital Credit FAQ'S

At Choctaw Electric Cooperative (CEC), every member is an owner of the business. Unlike other electric utilities, CEC exists to meet member’s needs, not to make a profit. Instead, any revenue over and above the cost of doing business are considered “margins.” These margins represent an interest-free loan of operating capital by the membership to the co-op. this capital allows CEC to finance operations and sometimes construction with the intent that this capital will be repaid to you in later years.


Below are answers to common questions for a better understanding of capital credits.


What are capital credits?


Capital credits represent each member's ownership of the cooperative.  They are margins credited, or allocated, to members of the cooperative based on their electric service purchase from the cooperative the previous year.  These margins are used by the cooperative as capital to operate the business for a period of time.  Retirement of capital credits is a return of member furnished capital.


How long do I have to cash the check?


Checks must be cashed within 90 days. However if the checks are not cashed within 90 days you may return the check.  Another check can be issued based on identification and conformation that you are the CEC account holder.


Will I get a refund every year?


The board of trustees determines refunds can be paid to the members when certain financial conditions permit, and cooperative bylaw provisions are met.


Why am I only receiving part of my capital credit allocation?


Each year the board of trustees decides if capital credits will be retired.  Then they approve an equity distribution plan which includes the total amount to be paid back and the allocation years to be retired.


Why didn’t I receive a check?


There could be several reasons why you did not receive a check.


  • Your allocation amount was $5 or less and it was applied to your active account. If your allocation was a smaller amount you may get a check during one of our next capital credit rotations.
  • We did not have a current address for your account. We can send you an address update form and re-issue the check as soon as the form with current information is returned.
  • The capital credit check was applied to your account if you left CEC and had an outstanding bill.

Can CEC apply my capital credit check to my bill?


The check can be applied to the bill if the "Paid to the Order" of name on the check matches the CEC account name.


If I bring my check to your office, will you cash it?


No. You may take the check to your banking facility and cash or deposit it.


A check was sent to my address, but it’s in the name of a former resident. What should I do?


Checks are sent to the last known address of former CEC members. Please mark “Return to Sender” on the envelope and mail the check back to us or drop it off at one of our offices.


My parents, or other family members are deceased and were CEC members. What happens to that money?


The allocated capital credits will stay in their account until a representative of their estate applies for Estate Capital Credit with documentation.  Forms are available at each CEC office, by mail or on our website, www.choctawelectric.coop.


I received a check with the name of a deceased family member(s) (parents, grandparents, etc.). What do I do with it?


Checks are sent to the last known address of former CEC members. Please mark "Return to Sender" on the envelope and mail it back to us or drop it off at one of our offices.  A representative of the deceased member's estate may apply for the Estate Capital Credit with documentation.  Forms are available at each CEC office, by mail or on our website, www.choctawelectric.coop.   


What happens to the capital credits if I move?


Always keep the cooperative informed of any address changes by completing a Patronage Capital Credit Record Update form.  Once the form is returned an address change can be made to your account.  Forms are available at each CEC office, by mail or on our website, www.choctawelectric.coop.


If you have further questions, please give us a call at 1 (800) 780-6486. We are here to serve you.