Capital Credits

Member-owned, not-for-profit electric utilities like Flint set their rates to bring in enough money to pay operating costs, make payments on any loans and provide an emergency reserve. At the end of each calendar year, we subtract operating expenses from the total amount of money collected during the year and this balance is the called “margin.”

These margins are allocated to member-consumers as capital credits based on their purchases from the cooperative. Member purchases may also be called patronage.

It is one of the seven Cooperative Principles: Member Economic Participation. That principle states: Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.

No, capital credits only exist at not for profit electric utilities owned by their members.

The Flint Energies board of directors makes a decision each year by August whether or not to refund capital credits. When the cooperative is strong enough financially and the member equity level is high enough, the Board directs the staff to refund some portion of past year’s capital credits.

Inactive Members who no longer purchase electricity from Flint Energies (with capital credits due) will receive a check after Sept. 15. Due to the expense involved in processing printed checks, all active members with capital credits due will see the refund as a separate line item on their September electric bill.

If you move or no longer have electric service with Flint, it is important that members keep their address current, so that future disbursements can be properly mailed. Capital credits are reserved for members even if they move out of the Flint service area. Flint will make a diligent effort to send a check by mail. See Unclaimed Capital Credits.

Any individual or entity that is uses electricity from Flint Energies. They are entitled to participate in cooperative elections and vote and to share in patronage capital allocations.

To assign capital credits to members/patrons after the books are closed on a one-year operation of the cooperative.

To pay capital credits to members either through cash or credit. It’s also called revolving, rotating or redeeming capital credits.

The period of time that capital credits are held by the cooperative before being returned to members.

Prior to refunding capital credits, Flint uses member equity in place of commercial loans to help construct the Cooperative’s physical plant (poles, wires, transformers, etc.).

If it will not impair the financial stability of the cooperative, it is the policy of Flint to retire deceased members’ capital credits early and on a discounted basis.   Flint should be notified as soon as possible following the member’s death as there may be capital credits to retire which could be claimed by the estate. Estate retirement is the return of an individual member’s capital credits after the death of the member. The deceased member’s capital credits amount will be reduced by any outstanding balance on any of the deceased member’s account(s).

An application to claim the estate capital credits retirement must be initiated by the deceased member’s heir(s) or estate administrator. Intestate estates will have capital credits paid pursuant to Georgia Law, O.C.G.A. 46-3-341.  Please contact Flint during regular business hours at 1-800-342-3616 to discuss estate capital credits retirement options. Documentation will be required to claim ownership.