Capital Credits

Your Ouachita Electric Cooperative Corporation will retire $750,000 in Capital Credits to its Members from patronage received in years 1997 and 2023.

OECC is a not-for-profit, member-owned electric company, providing electrical service to its members. Abiding by one of the seven Cooperative Principles: Member Economic Participation, the cooperatives board of directors determines the allocation of capital credits back to the members, based on the members’ patronage. Capital credits are just one of the many differences that set cooperatives apart from other business models.

How the process works:

1. Cooperative members use electricity provided by Ouachita Electric.
2. Ouachita Electric tracks members’ electricity use and patronage.
3. Year-end accounting and audit are completed. Financial obligations of the cooperative are met.
4. The board approves the portion of the margins to be distributed to the members.
5. Checks are issued each November to qualifying Ouachita Electric members. 

* In addition to our traditional capital credit retirement checks, this year we will offer to retire estates. If you are the executor/trustee/beneficiary of an estate and are currently receiving a yearly check on that inactive account, please contact our office at 870-836-5791.  Ouachita Electric board has set a limit to be used to pay out estates over the next year.  Once that dollar limit is reached, we will start a waiting list for our next retirement.

Definitions:

Member: At the cooperative, you are more than a customer, you are a member-owner.

Operating Costs: The cost to maintain, report and construct the electrical system and to deliver electrical service to its members.

Margin: At the end of the year, OECC subtracts the operating expenses from the amount collected and the balance is called the margin.

Patronage: At the cooperative, your patronage is the amount of money you pay to OECC on your electric bill each year.

Allocation:  The process of distributing each members’ portion of margin based on the total kWh purchased that year. 

Retire: A payout of money representing capital credits from your capital credit account.

Estate:  Arkansas law governs capital credits of a deceased member will pass to the probate estate for distribution or if no probate estate, then to his/her heirs at law.  Proof of heirship will be required.  If funds are available for retirement the capital credit retirement will be paid to the executor/trustee/beneficiary of the estate or if no probate estate, then payment will be made to the deceased members’ heir at law.  Proper paperwork will be required showing the authority to request the distribution.