Capital Credits

Capital credits are one of the unique benefits of cooperative membership, returning a portion of the cooperative’s margins to members over time.

CCEC is excited to announce that we returned

$2.75 million

in capital credits to its members who paid for electricity in 2005.

What are capital credits?

Because Cass County Electric Cooperative is a member-owned, not-for-profit organization, at the beginning of every year, any excess revenues or margins from the previous year are allocated to our members and later paid out as capital credits. As a member/owner, this means you benefit from any margins produced by the cooperative.

Capital Credits Infographic

How are capital credits allocated?

Any excess revenue (margins) remaining and approved of by the board of directors at the end of the year are allocated or assigned to your account as capital credits at the beginning of the following year based on the amount of energy you purchased during the previous year (patronage). Your account will accumulate capital credits each year you are an active member with us.

General Retirement

Each year, after assessing the co-op's financial status, our Board of Directors may approve the retirement of capital credits. If approved, general retirements are processed at the start of the year. Active members will see a credit on their bill, while inactive members will receive a check if their address is up to date and the amount is over $5.

We retire capital credits using the FIFO (first-in, first-out) method, meaning the oldest credits are paid first. We're currently on a 20-year payout schedule.

Early Retirement

Capital credits may be early retired if an active member leaves our service territory with an accumulated allocation value of $1,000 or less on their account.

The capital credits will be retired and paid out at present value, and a credit will be applied to the final bill. Any excess balance on the final bill will be issued as a check and mailed to the member's address on file.

Death of a member

For inactive electric accounts, please contact our office in order that we may mail you an application for retirement of the deceased’s capital credits. The application will need to be completed and returned with a copy of the death certificate and other legal documentation depending on the status of the estate.

For active electric accounts, please contact our office for the account to be closed and/or transferred into another person/entity’s name. We will provide you with an application for retirement of the deceased member’s capital credits. The application will need to be completed and returned with a copy of the death certificate and other legal documentation depending on the status of the estate.

Are capital credits taxable?

Generally, the receipt of capital credits is tax free if the property served by Cass County Electric Cooperative was used strictly as a residence and not for business purposes.

If the residence was used for business purposes and the payments for the electric bill served as a tax deduction, members should consult with their tax advisor about potential tax liability.

Capital Credits

One benefit of being a member is sharing in the cooperative’s financial success.

Capital Credit Name Search

CCEC is excited to announce that we returned

$2.75 million

in capital credits to its members who paid for electricity in 2005.

What are capital credits?

How are capital credits allocated?

General Retirement

We retire capital credits using the FIFO (first-in, first-out) method, meaning the oldest credits are paid first. We're currently on a 20-year payout schedule.

Early Retirement

Capital credits may be early retired if an active member leaves our service territory with an accumulated allocation value of $1,000 or less on their account.

The capital credits will be retired and paid out at present value, and a credit will be applied to the final bill. Any excess balance on the final bill will be issued as a check and mailed to the member's address on file.

Estate Retirement

Family members (heirs) of a deceased member may be eligible to obtain a payout at the present value of the total amount of capital credits on the deceased member’s account.

Please contact our office at 701-356-4400 for further information.

Upon a Divorce

Capital credits remain with the primary account holder. They will only be transferred or split between parties as listed in the divorce decree.

When you move

Please notify Cass County Electric Cooperative of your forwarding address to ensure you will receive any future checks mailed to you for any eligible capital credit retirements.

Death of a member

Are capital credits taxable?

Generally, the receipt of capital credits is tax free if the property served by Cass County Electric Cooperative was used strictly as a residence and not for business purposes.

If the residence was used for business purposes and the payments for the electric bill served as a tax deduction, members should consult with their tax advisor about potential tax liability.

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