Capital Credits

Big Bend Electric Cooperative, Inc. (BBEC) is a non-profit, member-owned corporation. Electric service is provided to BBEC members on a cost basis. The difference between what members paid for electric service and what the service actually cost to provide, is what electric cooperatives call “margins”. Each year, BBEC allocates any margins back to members based on how much business each member did with BBEC in accordance with BBEC bylaws.

Graph showing cumulative capital credit dollar amounts returned to members from years 2010 – 2016. Through 2010, $25,362,128.00 cumulative capital credits were returned to our members. This amount has increased to $36.5 million through 2016.

This allocation of margins is referred to as “capital credits” or “patronage capital”. BBEC is on a calendar year accounting basis and allocation takes place after the audit of financial statements are complete. Each year, statements are sent to members showing the amount of allocation. Members that have more than one account receive only one statement showing the combined allocation for all accounts held by the member. Capital credits are not necessarily distributed to members immediately following allocation.

Margins are used by BBEC to improve electric lines, build new services, and purchase trucks and equipment needed to operate the business. As finances in future years allows, BBEC pays back capital credits to members. It is important for former members with unpaid capital credits to keep their address current with BBEC. Heirs of deceased members with unpaid capital credits should contact BBEC to find out how to transfer the unpaid capital credits.

The amount of capital credits to be refunded depends upon prior years’ margins and future capital needs. The board of trustees decides the amount to be refunded. Capital credits have been refunded to members for 40 consecutive years, with payments during those years of $36.5 million. BBEC has refunded all capital credits through 1998.

The X axis of the graph represents cumulative Capital Credits refunded to members of BBEC.

If you move off of our system, it is important that you notify us of your new address in the event we attempt to return patronage capital to you in the future. Year after year, thousands of dollars go unclaimed when the Cooperative pays back patronage capital because former members do not provide us with forwarding addresses.

Feel free to contact our office with other questions you may have or visit our frequently asked questions page. Send emails to capitalcredit@bbec.org.

Please have your member number available, if possible, to assist us with your inquiry.