Capital Credits FAQs

Cooperatives operate on a set of seven principles that include a self-supporting system of operations. This system calls for a portion of any funds left over at the end of the year after all expenses are covered to be allocated to those who used and paid for their service.

Capital credits represent each member’s ownership of the cooperative. They are the margins credited (or allocated) to the members of the cooperative based on their kilowatt usage for the previous year. These margins are used by the cooperative as capital to operate the business for a period of time.

An allocation is the share of Grady EMC’s margin assigned to each member who purchased energy during that year. The retirement refers to the portion of the capital credits allocated to members that is refunded, depending on the financial condition and the capital needs of Grady EMC. Over time, all of each member’s capital credits are retired and refunded. In the case of a deceased member, the credits allocated to the estate may be retired once all appropriate paperwork has been completed and submitted by the heirs or estate representatives to Grady EMC Customer Service by email at custsvc@gradyemc.com or by calling 229-377-4182.

The amount of capital credits you earn in a given year is based upon the amount of capital you contribute to the cooperative through payment of your monthly bills. The more electric service you buy, the greater your capital credits account – although the percentage will remain the same. The sum of your monthly bills for a year is multiplied by a percentage to determine your capital credits.

Capital credit funds are used for reliability improvements and maintenance—and these are long term investments. Capital credits cannot be refunded all at once because they help the cooperative remain financially sound, thereby ensuring a stable, reliable electric service for the benefit of the members we serve.

Whenever Grady EMC’s finances permit, we return capital credits to our members. The decision is made by our board of directors after a thorough examination of the co-op’s financial position.

Capital credits are kept separate from your billing account and cannot automatically be applied to your electric account. When the board of directors decides to retire/return capital credits, Grady EMC members will receive a check made payable to the member(s) listed on the account.

Capital credit allocations are pooled together and used as operating capital so that we can serve our members with reliable power. These funds pay for power reliability improvements and maintenance such as replacing power lines or building substations.

If we refunded the total amount of allocations, we would have to borrow that amount of money in order to continue operating. Having operating capital helps the cooperative minimize the amount of high-interest money it must borrow, which in turn helps lower member’s costs by stabilizing rates.

Please write “Return to Sender” on the envelope and remit it to the U.S. Postal Service. Grady EMC will code the account so that future refunds for this member will not be sent to your address.

Grady EMC will still retire the capital credits of the member but will not mail out a check. The cooperative will list on its website all past members who currently have unclaimed retired capital credit funds.

If you believe that you or a person you are a legal beneficiary of have unclaimed capital credits, please complete the Unclaimed Capital Credits Form and submit to Customer Service at custsvc@gradyemc.com or by mail to P.O. Box 270, Cairo, GA 39828, or in person at our main office located at 1499 Hwy 84 W, Cairo, GA 39828.

Capital credits that are not claimed after 5 years from the date of the first mailing of checks will be donated for approved uses pursuant to O.C.G.A. Section 44-12-236.

If your check was issued more than 90 days ago, please contact Grady EMC and we will reissue the check.

The check you received belongs to you. It is a refund for capital credits allocated to your account during the years you had active services with Grady EMC. It is important that you keep Grady EMC informed of any change in your mailing address so that you continue to receive future refund checks.

Your capital credits remain on the books in your name and member number until they are retired. So, you should ensure that Grady EMC always has your current mailing address.

Capital Credits are a refund of prior years’ electric costs and not taxable unless the electric bills were deducted for tax purposes. However, please consult a tax professional for questions related to income tax filings.

No, you do not receive interest on your capital credits.

To convert your account to a joint membership, please call Customer Service at 229-377-4182.

Please furnish Grady EMC with a copy of a valid driver’s license and social security card. Include the account number and name as it appears before the change.

When one or more persons sharing a joint membership requests to be removed from the joint membership, the joint membership shall

a. continue to be held solely by the one or more persons who continue directly to occupy or use the premises covered by such membership

b. be terminated and any person or persons desiring to continue service to the premise may submit an application for service pursuant to the Bylaws.

All patronage allocated to any joint membership will be transferred to the member continuing to own or occupy the premises unless the parties to the joint membership mutually agree to a different allocation in writing.

Contact Grady EMC Customer Service at 229-377-4182.

The capital credits of a deceased member may be paid without waiting for a general retirement. However, these estate payments are not automatic. A legal representative of the estate must request the credits by submitting an application and a copy of the death certificate. These will be approved by the Grady EMC Board of Directors. If retirement is approved by the Board, a check will be issued to the estate and the account closed.

Capital credits that are claimed early due to the death of a family member are returned at a discounted rate.  This discount rate is used to determine the net present value of the immediate payout of the deceased member’s capital credits.  Present value is a calculation to determine the current value of a future payment.

Any past due and unpaid amounts owed to the Cooperative by the members will be deducted from the amount of the capital credit refund before payment is made or before the refund is deposited to the unclaimed funds account.

In order to apply for a deceased member’s capital credits, you must complete an application, submit a copy of the death certificate, copy of the obituary, picture I.D. of everyone who signs the application, copy of the will (if there is one), all signatures must be notarized. If applying as a surviving child(ren), all surviving children will need to sign the application and all signatures will need to be notarized.