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Capital Credit retirements coming soon

This year, Trico will retire capital credits totaling $1.697 million, consisting of $1.5 million from Trico and $196,603 from Arizona Electric Power Cooperative. Look on your December bill for your “capital credit retirement”.

Capital Credit retirements for all active accounts will now be posted as a credit on the Member’s bill instead of issuing checks. This will save the Cooperative $17,000 per year in check printing and mailing costs.

Capital credits are an integral part of Trico’s cooperative structure. They represent your equity in the Cooperative, and reflect the fact that you’re an owner of the business.

Inactive accounts will still receive a check for a refund over $10. If you move or no longer have service, Trico must have your current address in order to send your capital credit notices and retirements in the future.

Frequently Asked Questions

What are Capital Credits?

Trico Electric Cooperative, Inc., is a not-for-profit electric cooperative formed to provide electric service to its Member-owners.

In order to remain financially stable, a cooperative’s income must exceed its costs to operate the business. This is called a margin. If a cooperative cannot maintain a positive margin, it cannot obtain adequate financing to run the business. Each year, Trico’s margin is allocated to its Members.

When margins exceed the amount necessary to operate and maintain the business — and when Trico satisfies its required equity levels — Trico returns these extra margins to its customers in the form of capital credit retirements.

Certain regulatory agencies as well as Trico’s lenders require that Trico meet and maintain certain equity levels before Trico can issue capital credit retirements.

Each year the Trico Board reviews Trico’s finances. If Trico meets its financial requirements, the Board may approve retiring capital credits. This year, Trico has met these requirements and will be issuing capital credit retirements.

How are your capital credits determined?

Your allocation of capital credits for the preceding year is calculated based on the amount of kilowatt-hours you used and paid for. In June, your capital credit allocation was noted on your electric bill.

When capital credits are retired, you may receive a capital credit refund. Retirements are typically made based on a portion of each year’s allocations for which capital credits are outstanding. Retirements for active accounts will be credited to your next monthly bill.

Will my capital credits be paid to me if I terminate electric service?

When capital credits are retired (paid), inactive accounts are included in the retirement calculation until their balances are fully retired. (Early retirement of capital credits is not allowed when electric service is terminated.)

Retirements for inactive accounts will be issued by check. The amount must exceed $10 before a check will be issued. Retirements of less than $10 are retained until the minimum amount is accumulated.

If you move or no longer have service, Trico must have your current address in order to send your capital credit notices and retirements in the future.

Capital credits of deceased Members

Capital credits of deceased Members are returned to their estates on a discounted basis established by the Board of Directors. Payments will be made only to entitled persons, like personal representatives of estates.

No payments will be made to the survivor on an account owned in “joint tenancy.” The surviving tenant becomes the sole owner of the accrued capital credits, and will receive funds according to the general retirement schedule.

For more information about Capital Credits, email This email address is being protected from spambots. You need JavaScript enabled to view it..