Capital Credits

What are Capital Credits?

  • Capital credits are retained margins left over at the end of a year at a not-for-profit cooperative
  • Since a cooperative’s owners are also the people the co-op serves, capital credits reflect each member’s ownership in the cooperative
  • This differs from dividends investor-owned utilities pay shareholders, who may or may not be customers of the utility
  • Municipal or investor-owned electric utilities do not refund capital credits
  • Only not-for-profit electric and water cooperatives owned by their members (like you) return these credits

When are Capital Credits Paid?

  • The Graham County Electric Cooperative, Inc. (GCEC) board of directors decide each year if capital credits are to be distributed
    • This decision is based on the financial health of the cooperative
  • During some years the co-op may experience high growth in the number of new accounts added, or severe storms may result in the need to spend additional funds to repair lines
  • Both events might keep members equity low, causing the board to defer any capital credit refunds

Members Will Not Lose Capital Credits

  • All capital credits from each year that members have been served by GCEC are maintained until such time as the board refunds them
  • Each year an “allocation” is calculated and allocation notices are sent to members using our services for that year

What Happens If I Move?

  • The best way to ensure that you receive the credits owed to you, is to keep your mailing address current
  • To check or update your current mailing address with us, please contact GCEC at (928) 485-2451 during normal business hours (Monday through Thursday, 7 a.m. to 5:30 p.m. excluding holidays)
  • Even if you are no longer a member of the cooperative, you will receive all capital credits owed to you as long as your mailing address remains current
  • To keep your address up to date, fill out the change of address form
Change of Address Form

Name(Required)
New Address(Required)
Old Address(Required)

Members’ Economic Participation

Refunding capital credits expresses one of the 7 cooperative principles – Members’ Economic Participation

This principle states:

“Members allocate surpluses for any or all of the following purposes; develop the cooperative; setting up reserves; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.”

Members’ Economic Participation

Refunding capital credits expresses one of the 7 cooperative principles – Members’ Economic Participation

This principle states:

“Members allocate surpluses for any or all of the following purposes; develop the cooperative; setting up reserves; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.”

Capital Credits for a Deceased Spouse or Parent

When Capital Credits are distributed in a deceased spouse or a deceased parents name, the personal representative of the deceased estate can complete the Affidavit for Collecting Capital Credit Payment Form (PDF)
The legal representative must also provide a copy of the death certificate and/or estate documentation as applicable and return all documents to our office
Icon-infoIt is important to keep all information up to date with your utility company
icon-questionPlease contact our office with any further questions

How Do I Find Out If I Have Capital Credits?

  • As a convenience for our Members, this page of our website provides a searchable database of unclaimed patronage capital credits information as set forth in the Arizona Revised Statutes, Section 10-2071(E).
  • Please provide at least first or last name to search the database
  • If you find patronage capital credits that may be claimed please contact Graham County Electric at (928) 485-2451, extension 8664 to speak with a representative regarding your claim
  • Please be prepared to provide detailed information regarding your claim including name, address, account number, date of service, and other necessary information to verify your claim