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DSO Electric Cooperative Inc. | 201 Dakota Drive | Solomon, KS 67480 | PO Box 286 | 1-800-376-3533

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Capital Credits

Frequently Asked Questions About Capital Creditscc.jpg

Do DSO members get money back from their cooperative?

Yes! DSO has sent millions of dollars in capital credit retirements to its members.

DSO Electric Cooperative, Inc. is a non-profit electric utility, which means the co-op is owned by those it serves and not by private investors.

What are capital credits and why do I receive them as a co-op member?

As a non-profit electric utility, DSO needs only to cover the cost of yearly operations and keep sufficient cash on hand for capital needs. After meeting DSO's financial obligations, any money left over (margins) are allocated to the members in the form of capital credits.

As a co-op member, you share in the margins of DSO. The longer you use the service and the more service you use, the more capital credits you accumulate. The actual cash amount (retirement) you receive annually is determined by DSO's board of directors and is usually a percentage of your total usage amount.

Who is eligible to receive capital credits?

If you receive service from DSO, then you are eligible to receive capital credits, as part of your membership agreement.

When will I receive my share of capital credit retirements?

Each year DSO's board of directors approves the portion of capital credits to be retired. Because all members and former members are eligible to receive capital credit retirements, it is necessary to properly budget for this expense. By retiring a portion at a time, DSO is able to maintain financial stability while demonstrating a key benefit of cooperative ownership to its members.

How does DSO use member patronage?

The cooperative uses the money for the following:

  • To maintain adequate cash flow to meet current expenses.
  • To preserve enough equity in the company to meet lenders' debt-to-equity requirements and lower DSO's cost of borrowing money.
  • To reinvest millions of dollars in system improvements, new services and capital budget.
How much has DSO refunded to its members?

 

DSO has retired more than $7,350,000 to its members since its formation in 1936.

How is the capital credit retirement determined?

Each year the DSO board of directors determines whether the cooperative's financial condition permits the return on capital credits. If so, the board will authorize to refund capital credits to its membership and determine the manner, method and timing of the refund.

How does the cooperative notify its members about capital credit allocations?

DSO notifies its members of the annual capital credit allocations through a letter sent to the address on file.

What happens to a member's capital credits if the member moves off the system?

A member who terminates service with DSO will no longer receive capital credit allocations, but the balance in the member's capital credit account is maintained until it is retired in full. If the member has been on the system for less than five years, then the member has the option to maintain their capital credit allocations until normal retirement or receive an immediate retirement at net present value.

It is the member's responsibility to notify DSO of any changes in address so that the member can be located when it is time to retire capital credits allocated to the member's account.

What happens to a member's capital credits if the member dies?

Capital credits in the member's account belong to the member's estate. Please contact the DSO office to apply for the estate capital credit retirement of the outstanding balance of the deceased member's capital credits account. The estate retirement will be paid at the net present or discounted value.

Why are some capital credit retirements paid at the net present or discounted value?

In the interest of fairness to all members, DSO discounts early retirements of capital credits to reflect the net present value of making a capital credit retirement now that would otherwise be made at a later date. The smaller amount today, if invested until the normal retirement date, would be equal to the normal retirement amount.

Are capital credit retirements reportable on the member's tax return?

Capital credits are a return of money paid for electricity in a previous year and are generally not taxable income for residential customers. Please consult your tax advisor to determine the tax liability associated with your individual situation.

How can a member check to see if they have unclaimed capital credits?

Unfortunately, many members leave DSO without leaving a forwarding address. As a result, DSO is unable to contact them when their retirement checks have been processed, leaving thousands of dollars in unclaimed capital credit retirements each year.

If you suspect you may have unclaimed capital credits with DSO or you are making a claim on behalf of a deceased individual, then please call the DSO office at 800-376-3533.

News & Updates

Thursday | December 1, 2022

Improving Your Position

Improving Your Position Ken Hedberg, President of DSO Board of Directors Seasons greeting to my fellow member-owners of DSO. As we are now in the m...
more
Tuesday | August 2, 2022

PROPER LOAD MANAGEMENT BENEFITS EVERYONE

PROPER LOAD MANAGEMENT BENEFITS EVERYONE By: Derrick Rutherford Most are familiar with the kilowatt-hour (kWh) entry on your monthly electric stat...
more
Thursday | June 30, 2022

On the Line

On the Line by Michael Olberding Earlier this year, I wrote an article about drought and high wind. I hope that is all behind us now. With summer thu...
more
Tuesday | May 17, 2022

Interruptible Residential Rate

Sign up for the New Interruptible Residential Rate As summer approaches, DSO is getting more sign-ups for the interruptible residential rate. When t...
more

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Office Hours: Monday - Friday 8:00 a.m. - 4:30 p.m.

DSO Electric Cooperative, Inc. All Rights Reserved.

Touchstone Energy® Cooperatives is a national network of electric cooperatives across 46 states that provides resources and leverages partnerships to help member cooperatives and their employees better engage and serve their members. By working together, Touchstone Energy cooperatives stand as a source of power and information to their 32 million member-owners every day.

©2023 DSO Electric Cooperative. All Rights Reserved.

  • About Us
    • Vision, Mission, & Core Values
    • Members Policies
    • Bylaws / Rules & Regulations
    • Cooperative History
    • Seven Cooperative Principles
    • Capital Credits
    • Rates
    • Forms
      • Auto Pay
      • Apply for Service
      • Budget Billing Plan
      • Light Outage Form
      • Prepaid Agreement
      • Request for Donation Form
    • Employment
    • Contact Us
    • Directors and Consultants
    • Annual Meeting
  • My Home
    • Why Is My Bill So High?
    • Energy Savings
      • Energy Saving Tips
    • Office and Payment Locations
    • Payment Options
    • Residential Budget Billing
    • Transfer Service
    • Smarthub Signup Instructions
  • My Business
    • Energy Saving Strategies
    • Sector Reports
    • Technology Applications
  • Outage Map
  • Products & Services
    • Co-op Connections Card
    • Air Source Heat Pumps
    • Geothermal Heat Pump
      • Heat Pump Rebates
      • Certificate of Installation
    • Water Heater Energy Efficiency Program
      • Water Heater Rebate
    • Compact Fluorescent Light
      • CFL Color
    • TESCO
      • Surge Suppression - Information Request
  • Community
    • Economic Development
    • Youth Programs
      • Youth Tour Information Request Form
    • Kansas Country Living
    • DS0 Scholarship Program
  • Renewables
    • BioMass
    • Geothermal Energy
    • Hydrogen
    • Hydropower
    • Solar Energy
    • Wind Energy
  • Safety
    • Education
    • Phone Scams
    • Safety
      • Electric Shock Safety
      • Energy Theft
      • Flood Safety
      • Generator Safety
      • Holiday Lighting Safety
      • Inside Safety
      • Outdoor Safety
      • Hot Weather Safety
  • 4KW Solar
  • Capital Credits
  • Contact Us