Capital Credits

Each member is allocated capital credits based on how much energy the member obtains from the cooperative. The more energy a member purchases, the greater the amount of capital credit allocated to the member’s account. At the end of each year, we subtract operating costs and expenses from operating revenue collected during the year. This difference is called margins, which are allocated to the members on the basis of patronage.

Each year, when capital credits are retired, any amount of $49.99 or less will show up as a credit on members' bills. A check will be mailed to members whose retirement for the year is $50 or more. Checks will be mailed to a member’s last known address. The amount of the credit or check is based on how much power the member has purchased from the cooperative. This is why it is important for members to make sure Coast Electric has their current address on file. 

If you have questions about your capital credit account, you may email us at [email protected], log on to your account at www.coastelectric.coop, call 877-769-2372 to inquire or visit one of our local offices.

Capital credits allocated to Coast Electric members always belong to that member, even if they move outside of the co-op’s service area or pass away. There are two options for Coast Electric members who move outside of the service area, and for the families of members who have passed away.

Option 1 – Former members – those who have passed away or who have moved outside of Coast Electric’s service area with inactive accounts still receive capital credit retirements until the balance is completely refunded.

Option 2 – Former members now living outside of the service area, or the estates of deceased members, may request an early retirement of their allocated capital credits. An early retirement would offer a one-time payment of capital credits associated with the account on a net-present-value basis, less any bad debt that needs to be collected.

For inactive members who would like to have their capital credits paid early, the following items will need to be completed and notarized:

1. Application for early capital credit retirement OR Early capital credit retirement request for the estates of deceased members
2. If applicable, a copy of appointment of personal representative (i.e. will and/or any other documents deemed necessary)
3. A W-9 may be required for refunds. (www.irs.gov)
4. All electric accounts for the member must be closed prior to the year early retirement is being requested. If you choose not to take advantage of this one-time payment, any future payments will be paid according to Coast Electric’s current policies. If you have any further questions, please call 877-769-2372 or send an email to [email protected]. 

Coast Electric has a Board of Directors that have been elected by co-op members. Board members are all members of the cooperative and motivated by a desire to maintain reliable service at a fair rate. 

The board decides how to use the capital provided by the members and the amount, if any, that may prudently be retired to members in a particular year. The amount retired to members depends upon the financial condition of the cooperative and its strategic plan for growth and operations.

This varies according to each year’s particular financial and operational situation.

Coast Electric has paid more than $106.5 million in capital credit retirements to current and former members by the end of 2025.

Any member who has purchased electricity from Coast Electric during the time period being retired is eligible to receive a capital credit retirement. Members whose retirement is $49.99 or less for the year will have the amount credited to their Coast Electric account. If the retirement is $50 or more, a check will be mailed to the member's home during the next retirement period. If you have questions about your capital credit account, you may email us at [email protected], log on to your account at www.coastelectric.coop, call 877-769-2372 to inquire or visit one of our local offices.

What is a capital credit allocation?

Allocations are a record of a member’s ownership in the cooperative. Although a dollar amount is assigned, it is not held in an account. Instead, the funds are reinvested to maintain the cooperative's operations and the full allocation amount is distributed to the members over time. Distribution is dependent on the financial situation of the cooperative and at the discretion of the member-elected Board of Directors.

What is a capital credit distribution?

Capital Credit distributions are the payout of a portion of the capital credits allocated to the members.