Claverack is a member-owned, not-for-profit electric cooperative. As a not-for-profit, any funds remaining after expenses have been paid each year, also known as margins, are allocated back to our members. These allocated funds, called capital credits, accumulate each year you remain an active member on our lines.
The allocation notice that you received in June shows the capital credits which have been allocated to your account(s) for the year of 2021. You will notice that there are two types of allocations – Coop and G&T.
The cooperative allocation is based on revenue you paid to the cooperative for electric service during 2021. The G&T allocation is a result of capital credits assigned to Claverack REC from Allegheny Electric Cooperative and is based on the amount of electricity you purchased for the year.
Rather than being returned immediately to members, capital credits are often first used as working capital for new construction and system improvements, reducing long term debt and helping keep rates as low as possible.
Once new construction and system improvement needs are met, and based on the financial condition of the cooperative, the board of directors may authorize a retirement of capital credits. When a retirement of capital credit occurs, all active members will receive their retirement in the form of a bill credit. Inactive members will receive their retirement in the form of a check. It is very important that all inactive members update the cooperative with any address changes as they occur so that we can ensure your retirement checks will find you.
Please note that this is not a bill, nor can these amounts be applied to your electric service account, this is simply an informational notice.
When can I expect to receive my next capital credit retirement?
Active members will receive their portion of the retirement of capital credits on the bill that you receive in July of 2022.
Members who no longer have service with the cooperative will receive a check by mail if it is greater than $10 (credits remain on the account until the $10 level is reached, at which point a check will be issued.) Please be sure that your mailing address is always up-to-date with us so your check is successfully delivered.
Here is a short video to explain it even more:
IMPORTANT INFORMATION FOR FORMER CLAVERACK MEMBERS:
Over the years, members who no longer have active service with Claverack have not updated their mailing address with us so we were unable to successfully send them a check. We may owe money to you, or someone you know. Click here for more information and to review the full list.