Each year, all margins (income minus expenses) are spread proportionately to all active cooperative members according to the amount of money each member spent at Barron Electric that year. Capital credits accumulate in an account in the members’ name and are paid to members as a percentage each year. Annually, members receive a notice showing the amount of capital credits that have been credited to their account for the past year. Capital credits are usually paid back or retired after 18-20 years or when the financial condition of the cooperative permits. If a member passes away, there are two payment options for capital credits. These include: 1. Annual Pay-Out: The cooperative will pay out capital credits on an annual basis until the account is settled. 2. Lump Sum Discounted to Present Day Value: “Present day value” takes into consideration the fact that money presently received has the power to earn more money in the future. Therefore, the amount paid to an estate is discounted by the amount of interest it would have earned if held until it was due..

In 2010, Barron Electric returned nearly $700,000 in capital credits through the distribution of 9,500 checks. Continuously from 1965, the cooperative has paid back over $18 million in capital credits.

To ensure that capital credits are properly received, please inform Barron Electric of any address changes.

Barron Electric tries to locate people who have not claimed their capital credits through advertisements in local media. Unclaimed capital credits are put into a trust and used for such things as scholarships, library donations, cooperative education, and specific donations. Unclaimed Capital Credits