At an electric cooperative, you are more than just a customer, you are a member and owner. As part of that relationship, you will periodically receive money back in the form of capital credit refunds.
Each year, CTEC allocates margins (funds remaining after expenses have been paid) to your capital credit account based on your share of the revenue that was generated during that year. This capital allows CTEC to finance operations and construction projects as well as power restoration after outages, with the intent that this money will be repaid in later years when the cooperative is financially able to do so.
Since 1965, CTEC has returned more than $17 million in capital credits to its members. This year, Central Texas Electric Co-op will retire over $1.3 million to its members in December. The retirement process established by the co-op’s by-laws returns capital credits to all co-op members and emphasizes payout of the oldest unretired capital credits. The process also returns a larger share of capital to those members who have paid larger bills and contributed more capital over the years.
Active members (those currently still receiving electric service from CTEC) will have their 2019 capital credit refund applied as a credit to their December bill. Inactive members who are entitled to a refund of $10 or more will be mailed a check. To save postage and processing fees on inactive accounts, refunds of less than $10 will be accumulated from year to year until the minimum $10 amount is reached. Of course, capital credit refunds cannot be successfully delivered to you if the co-op is not kept abreast of address changes, so PLEASE keep us informed of your current address!
If you have questions regarding capital credits, please refer to our website, www.ctec.coop, or contact us at (830) 997-2126 or 1-800-900-2832.