What Are Capital Credits?

Capital credits are a unique feature of electric cooperatives. When Halifax EMC collects more revenue than we spend on operating costs, those margins are allocated back to members based on how much electricity they purchased during the year. Instead of paying profits to outside shareholders, we return them to you.

How Are They Calculated?

Each year, we calculate how much electricity you used and how much you contributed to the cooperative’s revenue. Based on that, we assign you a portion of the margins as capital credits. These are recorded in your account and may be returned to you in future years as the cooperative’s financial condition allows. A notice of allocation is noted on your September bill.

When Do You Receive Them?

Capital credits aren’t paid out immediately. They’re retained for a period to help fund operations and infrastructure—keeping rates stable and reducing the need for borrowing. Over time, as finances permit, the board of directors may authorize a retirement of capital credits, meaning a portion is returned to members as a check or bill credit.

Over the last 10 years, Halifax EMC has returned $8,934,540 in capital credits.

What Happens If You Move Away?

Even if you move out of our service area, your capital credits remain yours. That’s why it’s important to keep your contact information up to date. If we can’t locate you when credits are retired, they may go unclaimed.

Capital Credits and Deceased Members

Halifax EMC also continues to retire capital credits to the estates of deceased members. If an application has not been submitted on behalf of a deceased member, the executor or executrix of the estate may apply in person at our office to request a refund of any accumulated capital credits. It’s one more way the cooperative ensures every member receives their rightful share.