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Capital Credits

Red River Valley Rural Electric Association is organized as a non-profit, member-owned electric cooperative. Any monies available to the cooperative in excess of operating costs and expenses are defined by the organization’s bylaws as Capital Credits. The bylaws provide that all amounts paid for electric service by members in excess of costs are to be used as capital for the corporation. 


The amount of credit allocated to each member’s capital account depends on his/her yearly patronage and the cooperative’s total annual margins.  Article VII of the Bylaws more fully explains the Capital Credit processes of assignment and retirement, noting that the retirement (payment) of capital credits is dependent upon the financial condition of the Cooperative at the end of any fiscal year.  Subsequently, the Cooperative's current and former Boards of Trustees have approved the payment of all capital credits for years through 1985 and the partial payment of years through 2018. Check for Unclaimed Capital Credits.

 At the bottom of the page, members can find a PDF of unclaimed Capital Credits for 2019.

If you have any questions or need any assistance viewing/reading the document, please contact our offices at 580-276-3364.

How Capital Credits Work

Capital Credit Fact Sheet

Advice on Unclaimed Capital Credits and Other Questions  

 What are Capital Credits?

Red River Valley REA is a non-profit organization. Any profit or margins, related to the sale of electric service remaining after all expenses have been paid are returned to the members in proportion to their electrical usage.


How are Capital Credits returned?

Returning capital credits is a two-step process:

  • First, an allocation determines each member's share of the cooperative's margin for a given year. Margins are "allocated" or assigned to members who purchased electricity from the cooperative during the year in which the margin was generated. This allocation is based on the proportion of electrical sales for that year. Each member's portion is recorded in their capital credit account where it remains until it is "retired" (paid).

  • After reviewing the financial health of the cooperative, the board of trustees may declare a retirement, at which time all or part of each member's allocated amount is paid. 


Who will receive money this year?

For 2019, the Board of Trustees has approved the retirement of Capital Credits for the year 1985 and the partial retirement of years 1986-2018. Members from these years will be eligible to receive checks pending address verification.  


If you were a member during that time period and you do not receive a check before January 2020, please contact our offices at 580-276-3364.

What does REA do with Capital Credits not yet retired?

Capital credits are a significant source of equity for most electric cooperatives. Equity is used to help meet the operating expenses of the co-op, such as the cost of new power lines and the repayment of debt.


What happens to Unclaimed Capital Credits?

Sometimes, REA does not have a good address for a member and therefore does not mail a check. Other times, a check is mailed but never cashed by the recipient. This money is considered "unclaimed". Periodically, REA updates its list of unclaimed capital credits and then publishes it on our website. Members on that list may complete an address verification form to provide REA a good address. Then, if the dollar value is $15 or greater, a check will be written. 

What happens to Capital Credits of a deceased member?

If you are the rightful heir of a deceased member, you can complete a request form for estates and heirs.  Once verified, the eligible capital credits will be paid to you. A form for this purpose is available upon request.

Below is a PDF of unclaimed Capital Credits for 2019.  If you have any questions or need any assistance viewing/reading the document, please contact our offices at 580-276-3364.


KorDale Lornes,
Dec 31, 2019, 12:24 PM