A primary difference between a for-profit investor-owned company and a cooperative, such as Egyptian Electric, is what happens to revenue above and beyond annual operating expenses.
An investor owned (for profit) company disperses excess revenue (dividends) to its investors, those that own stock in the company. Investors invest in a company primarily for one reason; they expect a return on their investment. It does not make any difference how much they contributed to the revenue of the company (such as paying a monthly utility bill), unless they own stock, they will not receive any distribution of the profits.
A cooperative, on the other hand, distributes excess revenue to those that purchase goods or services in proportion to their contribution of the revenue. The more you contributed to the revenue through your purchases, the more that’s returned to you if there is excess revenue. We call these refunds of excess revenue Capital Credits.
The money represented by members' capital credits (sometimes referred to as patronage capital) is used by your cooperative to repay its long-term debt, to maintain reserves for financing of plant replacements, storm damage and other contingencies, and for other proper purposes. Because patronage capital has to be used in this manner, your board of directors has determined it is not possible to currently refund capital credits to the members. Instead, the amount of patronage capital due you is recorded on an account established in your name and made a permanent part of the Cooperative's records. The amount credited to your account may in the future be paid in full or in part predicated on prudent business management of the Cooperative. Should the Board of Directors determine a refund of patronage capital credits be made, they will be refunded in accordance with the by-laws of the Cooperative.
Our Board of Directors has established a policy that discounted early distributions of Capital Credits to estates will be made upon request. If you or someone in your family is a beneficiary of the estate of someone eligible to receive a refund, please contact us at 1-800-606-1505 or email us at firstname.lastname@example.org with the name and date of death of the deceased party. We will be happy to send you the applicable paperwork and other information.
Unclaimed Capital Credits
Sometimes when a distribution of Capital Credits is made, past members of the cooperative cannot be found. When this happens, these Capital Credits are placed in an Unclaimed Capital Credits account. If you know of or are related to anyone that may have distributed Capital Credits due them, please call us at 1-800-606-1505 or email us their name and current address at email@example.com.