Capital Credits

In a cooperative like Crow Wing Power, you are a member-owner of the business. One major difference between a cooperative and an investor-owned utility is that you see ownership in the business through capital credits. Capital credits return member's margins over and above operating costs. Annually the Board of Directors must evaluate the financial ability to return capital credit checks.

Capital credit checks totaling over $2 million were paid out in November with over $4.5 million paid out in 2020. Nearly $30 million has been returned to Crow Wing Power members in the past 24 years.

Margins over and above operating costs are returned to cooperative members when the Board of Directors determines it’s fiscally responsible to do so. 

 

 

 

Unclaimed Capital Credits

Crow Wing Power is looking for previous members that we haven’t been able to locate to give them their capital credit distributions. We have a list of about 8,500 people that have moved and not given us current address information. Therefore, when we send capital credit checks like we normally do each spring, some checks get returned to us and others may simply go uncashed. We call those unclaimed capital credits. 

By law, we hold unclaimed capital credits for a period of seven years in order to allow people to claim them. After that period of time, we release them, normally to further students’ higher education. If we did not use it for scholarships or non-profits, we would by statute need to give the money to the State of Minnesota.

Each year $50,000 to $70,000 in unclaimed capital credits goes to scholarships for college or technical school attendance to members’ high school seniors within our service territory. 

Unclaimed Capital Credit Checks 

Capital Credits FAQ's

Capital credits are the revenue or margins that are left over after all bills associated with doing business have been paid.  The amount of money members receive is based on how much electricity they purchased during the year or years that are being paid out.   

Each year Crow Wing Powers Board of Directors makes a decision on whether to refund capital credits based on the financial health of the cooperative.  During some years the co-op may experience high growth in the number of new accounts added or severe storms may result in the need to spend additional funds to repair lines.  Both events might cause the Board to defer any capital credit refunds. 

If you move or no longer have electric service with Crow Wing Power, it is important that you keep your address current with us so that future disbursements can be properly mailed.  Capital credits are reserved for members even if they move out of CWP’s service area.

In most cases, capital credit checks are not taxable for residential consumers.  However, Crow Wing Power recommends consulting your tax advisor for all tax-related matters.

Capital credits are also paid out to settle estates.  Capital credits continue to retire during the scheduled general retirement until fully retired.  However, the estate representative may elect to take an accelerated retirement on the capital credits. The calculation for the accelerated retirement is based on the net present value of money.  The Cooperative has determined this procedure to be fair for membership as whole since the rest of our members must keep their capital credits invested in the Cooperative until retired during the general retirement each year.   

Deceased Member’s Capital Credit Retirement Options

The heirs/legatees of a deceased Cooperative member have two options to receive the capital credits allocated to the deceased member.

Option A

The first option is the general retirement option which will pay the heirs/legatees of the deceased member the non-discounted capital credits according to the normal retirement process of the Cooperative. This means that heirs/legatees will receive the capital credits over an approximately 24-year period as approved by the Board of Directors of the Cooperative each year.

Option B

The second option is an accelerated retirement of the capital credits of a deceased member to the heirs/legatees of the estate, based on the net present value of money. In order to assist members in making their selection, the heirs/legatees of a deceased member’s estate can contact the Billing Department and speak to a representative. Crow Wing Power will mail the information you need to retire the estate.

We request a death certificate and an Affidavit for Collection of Personal Property for both options A & B.

Affidavit for Collection of Personal Property    

Mailing Address:
Crow Wing Power
PO BOX 507 
Brainerd, MN 56401

Phone Number: 
218-829-2827 or 
800-648-9401

To search the capital credit/property list for a particular name: 

1. Click the link above to open the list.

2. On the toolbar at the Bottom Right of the page, click the magnifying glass icon. 

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3.Type the last name/company name or part of the name you want to search for. 

4. Press the "enter" key on the keyboard.  Press the arrows to go to the next matching entry.

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