Capital Credits

What Are Capital Credits?
Capital credits are a unique feature of electric cooperatives. When Halifax EMC collects more revenue than we spend on operating costs, those margins are allocated back to members based on how much electricity they purchased during the year. Instead of paying profits to outside shareholders, we return them to you.

How Are They Calculated?
Each year, we calculate how much electricity you used and how much you contributed to the cooperative’s revenue. Based on that, we assign you a portion of the margins as capital credits. These are recorded in your account and may be returned to you in future years as the cooperative’s financial condition allows.

When Do You Receive Them?
Capital credits aren’t paid out immediately. They’re retained for a period to help fund operations and infrastructure—keeping rates stable and reducing the need for borrowing. Over time, as finances permit, the board of directors may authorize a retirement of capital credits, meaning a portion is returned to members as a check or bill credit.

What Happens If You Move Away?
Even if you move out of our service area, your capital credits remain yours. That’s why it’s important to keep your contact information up to date. If we can’t locate you when credits are retired, they may go unclaimed.

Unclaimed Capital Credits & Credit Balance Refunds
Halifax EMC seeks to return refunds to former members and/or current members whose capital credit checks were marked undeliverable. The unclaimed capital credits, as well as names of former members who are owed a credit balance can be viewed here.

Halifax EMC continues to retire capital credits that accumulate to the estates of deceased members. If an application for a capital credit refund has not been submitted to the cooperative on behalf of a deceased member, the executor/executrix of the deceased member’s estate may apply at the cooperative’s offices for the capital credits or email capitalcredits@halifaxemc.com.