Capital Credits are just one of the many reasons its great to be a member of an electric co-op. Because Lane-Scott Electric operates at-cost as a cooperative, we can retire funds in excess of operating expenses back to our members when our financial situation allows. This month Lane-Scott is proud to announce we are issuing a general retirement of capital credits in excess of $390,000 to members who received capital credit allocations in 1988, 1993, 1994, 1995, 1997 and a small portion of 1998. If you had an electric account in your name at Lane-Scott during these years, capital credits will be returned to you.
Receiving Your Capital Credits
Lane-Scott mailed letters in October to all active Lane-Scott members receiving capital credits. Members were given the option to receive either a check or a credit on their current Lane-Scott Electric account. The deadline to contact Lane-Scott was November 5th. Members who did not call-in requesting a check will receive a credit to their primary Lane-Scott account on their December bill. Those requesting a check can expect to receive it in their mailbox in December.
Inactive Members: We will mail checks in December to past members of Lane-Scott who are to receive a capital credit retirement. Checks are being mailed to the most current address on file. Undeliverable checks returned to Lane-Scott Electric are placed on our Unclaimed Capital Credit List which will be published this Spring in the Kansas Country Living Magazine and on our website. If you think we might have outdated information for you, call us and we will immediately reissue the check to the correct address.
Frequently Asked Question
What are Allocated vs. Retired Capital Credits?
Allocated capital credits are the member’s share of net margins and reflect your equity and ownership in Lane-Scott. This money is set aside and utilized as operating capital for improvements and maintenance over a period of years. Your allocation statement showing your total equity is shown on your Lane-Scott Electric bill each year after our annual audit has taken place.
The board of trustees evaluates the financial condition every year to determine if retirements can take place. Typically, Lane-Scott retires capital credits 20-25 years after allocated, or upon death. Until retirement, an allocation has no cash value.
Will I receive my check if I have moved?
If you received capital credit allocations during your years of electric service, you are entitled to the retirement from those years even if you’ve moved out of the Lane-Scott Electric service territory. You will receive your check as long as we have your current mailing address on file. If we do not have a valid address, the check will be returned to Lane-Scott and be put on our Unclaimed Capital Credit list until we receive a valid address. Always keep us informed of any address and telephone changes!
What if the member receiving the retirement is deceased?
A representative of the deceased needs to contact our office and we will walk you through next steps based on the individual situation.
Do I have to report capital credits on my tax return?
Capital credits are tax free if the property served by the cooperative was used strictly as a residence. If the property was used for business purposes, members should consult with their tax advisor about potential tax liability. We are required by law to file a Form 1099 for all payments in excess of $600, regardless of what type of account.