Citizens Electric Directors approve to return $3 million to members
Perryville, MO (August 1, 2023) – Citizens Electric Corporation’s Board of Directors has authorized a capital credit retirement of approximately $3.0 million to members who had service with the Corporation during the years of 1997, 1998, & 2020. The amount of the refund to individual members depends upon the amount of electricity purchased during that time. Prior members who no longer live on Citizens Electric’s system will receive their capital credit retirement in the form of a check.
What are capital credits?
Although Citizens Electric is a corporation, it conducts business as a member-owned, not-for-profit cooperative. Funds paid to the Corporation that exceed expenses are called patronage capital or capital credits. At the end of every year, these funds are assigned to each member according to the amount of electricity purchased during that year. By using these funds to build new lines and update Citizens’ electric system, the Corporation is able to reduce borrowings and provide reliable electric service at the lowest possible cost.
How does CEC pick what years to refund?
The decision to refund capital credits is the sole discretion of Citizens Electric’s Board of Directors and the amount to retire is determined each year based upon the financial condition of the Corporation. For the past six years a portion of the most current and oldest patronage dollars have been returned to our members.
What if I move?
Capital credits that are unclaimed two years after being retired are published in the local newspaper and on the Corporation’s website. It is important that you notify CEC with changes to your mailing address if you move outside the service territory. Any capital credits unclaimed after this notice is published are considered donated capital and are reassigned with current year margins.
Due to the expense of issuing checks, credits for inactive or former members totaling less than $20.00 will be held until future capital credit retirements are processed and the cumulative total to be paid reaches $20.00. Estate Retirements are available at a discounted rate. If a member receives a retirement check as Power of Attorney, they may contact our Member Services team to complete the necessary paperwork to obtain a final retirement.
Questions concerning capital credits can be directed to our Member Services team by calling us at (877) 876-3511 or emailing the team at citizens@cecmo.com