What are Capital Credits?
Since Shelby Energy Cooperative is a not-for-profit business, any revenue that is not needed to cover the cost of providing service is assigned back to our members based on the amount of electricity the particular member used during the year. Shelby Energy Cooperative's member-elected Board of Directors review the cooperative's finances each year and determines the amount of capital credits to refund. The amount of money that members receive is based on their individual usage during the year(s) that are being refunded.



What is an allocation?
Capital credit allocations are not the same as capital credit distributions (the payment of capital credits to members). Allocations are a record of your ownership in the cooperative. Although a dollar amount is assigned, it is not held in an account. Instead, the funds are reinvested in order to maintain the cooperative's operations and the full allocation amount is distributed to the members over time (Shelby Energy is on a 35-year rotation,currently). Distribution is dependent on the financial situation of the cooperative and at the discretion of the member-elected Board of Directors (see below).

What is a distribution?
Capital Credit distributions are the payout of capital credits to the members which usually happens in December each year. This can be in the form of a check or a bill credit depending on the amount of the refund.

Can you apply my refund as a credit towards my bill on my account?
All capital credits under $50 are currently issued as a bill credit. 

How do I receive my capital credits if I am no longer a member?
Keep us updated on your current mailing address even when you move from our service territory.  You will receive a capital credit refund from your time with us in the same manner and rotation period as an active member would. 

What happens to the capital credits when a member dies? 
The deceased member's capital credits are paid to the estate or heir upon their death. The executor/heir of the estate must provide proper documents (copy of the death certificate and appointing orders from the court) to claim the credits of the deceased member. The deceased member's electric account must be closed and fully paid. The executor should notify Shelby Energy as soon as possible following the death of a member or former member. 

Call Shelby Energy at 800-292-6585 if you have questions regarding a deceased member's capital credit account or complete the Capital Credit Request Form below and someone will contact you. 

  Capital Credits - Request/Submit Information