Nolin RECC is a not-for-profit organization and we strive to keep costs low for our members. The money you pay to us when you pay your electric bill covers the cost of wholesale electricity from our power provider, materials for our poles and lines, and our operating costs. If we have money left over after these expenses are paid, we consider these as margins. These margins are allocated each year to our member-owners based on their kilowatt usage for that year. These funds must be held in reserve for operational expenses to operate the cooperative efficiently and for emergencies.
Capital credit allocations are your portion of the margins that may be left over at the end of the year. Your portion is based on your kilowatt usage for that year. Capital credit allocations are not immediately available to apply toward your bill or receive as a check. The allocated funds are kept in reserve to ensure we are able to cover our financial obligations and operational expenses. The Board of Directors may vote to retire funds for certain years if the cooperative is in a financial position to do so. Funds are considered retired when they are available to be paid out to our members.
When the cooperative is in a financial position to do so, our Board of Directors may vote to retire these capital credits in what we call a general retirement. If we retire the funds from a year in which you were allocated margins, you may receive a check or bill credit during a general retirement. If you are an active or former member, you may receive a check if your payout is more than $10.00. If you are an active member, you may receive a bill credit if your payout is less than $10.00.
As of December 2020, Nolin retired capital credits for years up until 1991 in addition to 1998, 2012, 2018 and 2019, as well as East Kentucky Power Cooperative Capital Credits from 1972 and 1973. In November 2021 we retired capital credits for 1992, 1993, and 2020. In 2022, Nolin is pleased to be retiring $5.5 million of previously allocated capital credits for the years 1995, 1998, 2003 and 2021 as well as $1.2 million in East Kentucky Power capital credits from 1976, 1981 and 1982.
The capital credits you have been allocated while on service with Nolin RECC remain in our records under your name until they are retired. It is very important to keep us notified of any changes in mailing address should you be issued a check in the future. Even if you’re no longer on service with us, you may still receive a check for a general retirement for the years you were on service once they are retired. Please call our office at 270-765-6153 to update your mailing address and contact information.
The capital credits of a deceased member remain on our records under their name until a representative from their estate applies for an estate payout. In order to apply for the capital credits of a deceased member, the representative must complete an application and provide a copy of the member’s death certificate and a court order appointing them as executor or administrator of the estate. If there was no court order for the estate, we may still be able to pay out the capital credits under certain circumstances. Please call our office and speak to a customer service representative at 270-765-6153 for more details.
Download the application for an estate payout HERE