Capital Credits
As a member of an electric cooperative, you build ownership in HEA through your kilowatt-hours purchase. There is not stock to be purchased or sold; our members own the business.
Capital credits reflect each member’s ownership in the cooperative. Electric cooperatives like HEA do not earn profits in the sense that investor-owned utilities earn profits for their investors. Instead, any margins or revenues related to the sale of electric service remaining after all expenses have been paid are returned to the cooperative’s members in proportion to their electrical usage.
Do We Owe You Money? View our current list of Unclaimed Capital Credits.
Visit the NRECA website to learn more about Electric Cooperatives.
Below you’ll find some frequently asked questions about capital credits. If you have any additional questions about HEA’s capital credits program, please call our office:
Toll-free in Alaska: 1 (800) 478-8551
Homer office: (907) 235-8551
Kenai office: (907) 283-5831
No. During years where expenses exceed revenues or there is a loss, there are no margins to allocate. Margins are allocated to only active members for the years margins are earned.
There are two options available for collecting the deceased member’s capital credits.
Option 1: Continue to receive refunds at the same time as future general retirements: the estate of the deceased patron will continue to receive capital credit refund payments according to the schedule set by the Board of Directors.
Option 2: Lump Sum Payment: If the legal representative requests a refund of the full amount of the capital credits of the deceased patron, after providing certain documentation (such as the death certificate, letters of testamentary, statement of appointment of personal representative), the total capital credits accumulated will be discounted at the net present value. This net present value is based on a formula intended to represent the fair value of the patronage capital when refunded earlier than scheduled.