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Capital Credits FAQs

What are capital credits?

IREA is a member-owned cooperative. The company’s revenue, or margins, is invested in the business and each year is booked to the credit of customers based on electricity usage as capital credits. Margins ultimately are returned to member-owners in the form of capital credit refunds. Capital credit refunds are paid to members when IREA’s board of directors deems that payment will not impair the financial condition of the cooperative, and that the payment is not in conflict with any limitation imposed by the provisions of any debt, investment or agreement.

What is the difference between allocation and retirement?

An allocation is the share of IREA’s margin assigned to each customer who purchased energy during the year. The retirement refers to the portion of the capital credits allocation to customers that is refunded nearly every year, depending on the financial condition and the capital needs of IREA. Over time, all of each customer’s capital credits are retired and refunded. In the case of a deceased customer, the credits allocated to the estate may be retired once all appropriate paperwork has been completed and submitted by the heirs or estate representative(s) to IREA Account Services by email at AccountServices@IREA.coop or by calling 303-688-3100 ext 5307.

How is my refund determined?

The board of directors approves retirement methodology each year that designates how refunds are to be paid to current and former customers and that may retire credits allocated for certain years. The association’s goal is to retire at least 4% of equity allocated to members each year.

When are capital credits returned to members?

If approved by the board of directors, capital credit refunds typically are returned each March.

Will I receive a check, or will the capital credits be applied to my electric bill?

Residential and commercial customers not on Budget Billing and with one active account will receive the capital credit refund as a bill credit, unless the customer opts out. Customers can opt out of bill credits by filling out the Bill Credit Opt-In/Opt-Out Form.

Customers with multiple accounts will receive capital credit refund checks unless the customer opts in for the bill credit and designates one account to credit. To opt in to receive a bill credit instead of a check, complete the Bill Credit Opt-In/Opt-Out Form.

Budget Billing customers will receive capital credit refund checks, as bill credits are not compatible with Budget Billing.

Customers who do not have an active account will receive a check in the mail.  Checks are not issued for amounts less than $8.00, but the amounts accumulate in your capital credit account from year to year. Once the amount reaches $8.00 or more, a check will be issued for the full accrued amount from previous years and the current year. If the capital credit is applied to your account as a bill credit, the $8.00 limit does not apply. Any amount can be applied to your account as a bill credit.

What if I receive a check that is not mine?

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

I found an old capital credit check that I forgot to cash. How long do I have to cash my capital credits refund check?

If your check was issued more than 180 days ago, please contact IREA and we will reissue the check.

I have left the IREA service area, but still receive checks in my name.  Do they belong to me or to the new owner or resident of my former address?

The check you received belongs to you. It is a refund for credits allocated during the years you had active service with IREA. Outstanding capital credits for the period between 1987 and now will continue to be refunded on a percentage basis. It is important that you keep IREA informed of any change in your mailing address so that you continue to receive future refund checks.

What happens to my capital credits if I move away?

If you move from our service area, the capital credits accumulated in your account will remain in your name. It is important that you keep IREA informed of your current mailing address so that we can send you any future capital credit refunds. The association will issue a check to you unless the capital credit amount is less than $8.00. Checks are not issued for amounts less than $8.00, but refund amounts accumulate from year to year. Once the amount reaches $8.00 or more, a check will be issued for the full accrued amount from previous years and the current year.

Do I need to report capital credit refunds on my income tax return?

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.

Will I receive interest on my capital credit refund?

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

How can I add someone to my capital credit account?

Only spouses are eligible for joint membership.  To convert your account to a joint membership with your spouse, complete the Joint Membership Agreement Form. Both parties must sign.

How can I update my name on my account following a marriage or divorce?

Please furnish IREA with a copy of either a valid driver’s license or a copy of the marriage or divorce decree. Include the account number and name as it appears before the change.

How do I remove the name of my spouse from a joint account after a divorce?

Future capital credit refunds will continue to be issued in both names because the account covers the period of time service was in joint tenancy. If you would like to have the refunds issued to just one person, please decide which of the following options is best for you:

Relinquishment – To relinquish all capital credits and remove a party’s name from an account, print and complete the Relinquishment Form. Payments on the account must be current. The completed form must be signed by the party whose name is to be removed, and the form must be notarized. Return the completed form to IREA by mail to P.O. Drawer A, Sedalia, CO 80135, by email to AccountServices@IREA.coop, or by fax to (720) 733-5874.

Split – To split all capital credits and remove a name from an account, print and complete the Split Form. Payments on the account must be current; the form must be notarized. Return the completed form to IREA by mail to P.O. Drawer A, Sedalia, CO 80135, by email to AccountServices@IREA.coop, or by fax to (720) 733-5874.

How can I update my mailing address so I receive any future capital credit refunds?

If you have an active account with IREA, log into My Account and access the Address Update option, or contact IREA at (800) 332-9540 to speak to Consumer Services.

In the event of the death of a past or current account holder, what does IREA require to process the disbursement of capital credits?

Contact the Account Services group for information concerning the required documents. The department can be reached by calling IREA at (800) 332-9540, Ext. 5307 or by emailing AccountServices@IREA.coop.