Capital Credits

Want to know more about capital credits? Download this flyer for an easy-to-understand overview.

Glades Electric Cooperative is owned by you, our members. Yes, you are actually part owner of an electric cooperative – just like stockholders who own Duke Energy or Florida Power & Light.

However, GEC doesn’t issue stock shares like an investor-owned utility. Our members are allocated capital credits. Unlike stock shares, capital credits may not be sold or cashed. The biggest difference between stock shares and capital credits is that stock shares are an investment to make profit for an individual. Capital credits are an investment in the future of our communities.

In 2022, GEC’s Board of Trustees decided not to retire capital credits due to financial conditions resulting from increased power costs. CEO Jeff Brewington addressed the decision in his October 2022 column in Florida Currents magazine.

Members were notified of their 2021 Capital Credit allocations on their bills received in July 2022. Remember, 2021 capital credits are not retired and credited to bills at this time. They will be retired to members in the future. The 2021 allocation statement on bills is just a notification of the amount members will receive in the future.

When capital credits are retired, current members receive a bill credit; inactive members receive a check. Be sure to keep your address current with us. If we don’t have your current address on file, your capital credits will be listed as unclaimed. Unclaimed capital credits must be claimed within three years of the retirement date. Below is a database of our unclaimed capital credits from our 2020 retirement, which must be claimed by May 1, 2023.

Search Unclaimed Capital Credits from the 2021 Retirement of 1988-1990 Capital Credits

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Unclaimed Capital Credits

To request unclaimed capital credits, please call us at (863) 946-6200 or use the online contact form to begin the process. Please be sure to include your account number if contacting us via the form.


Capital Credit FAQs

What are capital credits and where does the money come from?

Member-owned, not-for-profit electric cooperatives operate on an at-cost basis. Rates are set to generate enough money to pay operating costs, make payments on any loans and provide an emergency reserve. At the end of each year, operating expenses are subtracted from operating revenue collected. The balance is called an operating margin. Margins are allocated to members as capital credits based upon the value of power the member purchased during the year. Later, as financial conditions permit, these allocated amounts—capital credits—are retired and distributed to members. Capital credits represent the most significant source of equity for Glades Electric Cooperative.

Why does GEC retain capital credits?

Capital Credits sustain the business of the cooperative. They are used to build new lines, pay wholesale power bills, and to generally keep a positive cash flow at the co-op. The members’ Capital Credits enhance the co-op’s ability to hold down electric rates.

A member may ask, “If the co-op is doing all that with my capital credits, what benefit are they to me?” At the end of each year, after all operating expenses have been paid, a prorated percentage of GEC’s margins is allocated to member-owners based on the amount each member paid for electricity during the year. This allocation of margins is known as capital credits.

When are capital credits retired?

Each year, the GEC Board of Trustees determines how much of those annual margins are required to run the business in the coming year. The amount not needed to pay down debt, for required new construction, or system restoration projects is returned to each member in the form of “Retired Capital Credits.” All monies retained in the business build your equity in the company. Some years, the co-op may experience high growth, or severe storms may require spending more to repair lines. Such events might increase costs and decrease member equity, causing the board not to retire capital credits each year.

When did Glades Electric last retire capital credits?

In December 2021, we retired capital credits allocated to members in 1988, 1989, and 1990. If you were not a member during those years, you would not have received a bill credit or check for the retirement.

How does a member know the amount of their capital credits retained by the cooperative?

Once a year, each member will receive a written notice of the amount of capital credits allocated for the previous year, including the total accumulated allocation for each account. If your account is active, the notice will be printed on your bill. The annual allocation cannot be used as a credit against your current electric bill. The information is provided only for your records. If your membership is no longer active, you will not receive a notice for years in which you are not an active member.

What if I move?

When you move or no longer have service with GEC, it is important you keep the cooperative updated with your current address so future retirements can be mailed to you. You are entitled to retired capital credit even if you moved out of GEC’s service area. If you had an account during the year(s) for which capital credits are retired and we have your current address, we will mail your retirement check.

What happens to unclaimed capital credit retirements?

Retirements must be claimed within three years of the retirement date. All unclaimed retirements are used to fund college and vocational scholarships through the Glades Electric Educational Foundation and to fund capital improvements.

Capital Credit Transfer Application

To claim retired capital credits or present day value capital credits for a deceased member, download the Capital Credit Application (PDF). If you have any questions, please contact the Member Service Department in your local office, or call us at 863-946-6200.

Capital Credit Beneficiary Designation

Capital credits are retired on approximately a 30-year cycle. To designate a beneficiary for your capital credits, please complete our Capital Credit Beneficiary Designation Form. Please contact the Member Service Department at 863-946-6200 if you need assistance.