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Capital Credits Frequently Asked Questions

 

What are capital credits?
When you signed up to receive electric service from MJM, you became a member of a not-for-profit electric cooperative. While investor-owned utilities return a portion of any profits back to their shareholders, electric cooperatives operate on an at-cost basis. So instead of returning leftover funds, known as margins, to folks who might not live in the same region or even the same state as you do, MJM allocates and periodically retires capital credits based on how much electricity you purchased during a year. This year, members from the remainder of 1975 through part of 1977 will receive capital credits retirements through a check in the mail, reflecting their contribution of capital to, and ownership of, the cooperative during those years. That may seem like a long time ago. However, those funds helped us keep the lid on rates, reduced the amount of money we needed to borrow from outside lenders to build, maintain, and expand a reliable electric distribution system, and covered operating expenses.
Previously, I filled out paperwork for the 2013, 2014 or 2015 capital credit retirements (which covered 1961 thru a portion of 1977) to specify who should receive the check(s). Should I fill out paperwork again?
No, there is no need. Once the correct paperwork has been given to us to change the name or names on capital credit allocations, we will continue to honor that change.
How long do I have to claim/cash the check?
Checks must be cashed within 120 days.
Why am I only receiving part of my capital credits allocation?
Right now, we are returning capital credits accumulated from the remainder of 1975 through part of 1977. Eventually, we will be retiring capital credits from 1978 on, but it’s up to our board of directors to decide how much we can return. Please make sure that whenever you move that you send us your updated mailing information. That way, whenever we have future retirements we are sure to send your check to the right address.
Why didn’t I receive a check?
If you were a member during 1975 - 1977, there could be multiple reasons why you did not receive a check.
  1. Your allocation amount was less than $10. — For people who continued to be an MJM member any time after 1977, we are only sending checks for $10 or more. If your allocation amount for our current capital credit retirement was less than $10, you will probably get a check during one of our next capital credit retirements instead.
  2. We did not have an updated address from you. — It could be that the check was sent to the last mailing address that we had on file for you. Please call our office at 1-800-648-4729 and let us know you need your check sent to a new address, and we will resend your check within 30 days.
  3. The check was applied to the money you owed the Cooperative. — If you left MJM still owing us money that was uncollectable, the capital credit check was applied to your account.
The check was sent to the wrong address. Can you please resend the check?
Yes, as long as the name is correct, we can change the address on the envelope and resend the check. Please contact MJM at 800-648-4729.
Can MJM apply my capital credit check to my bill?
If we have the check here, or if you bring the check to us, we can void the check and apply the capital credits to your account. But, the check must be made out in your name and/or the name that matches the name on the MJM account.
A check was sent to my address, but it’s in the name of a former resident. What should I do?
We send checks to the last known address of former MJM members. Do not open the check; please mark “Return to Sender” on the envelope and mail the check back to us.
As a renter, I paid the bill for my electricity, but the landlord’s name is on the check instead of mine. Can you rewrite the check in my name?
If you talk to your landlord and he/she agrees to give you the capital credits, we can reissue the check in your name. Please have the landlord contact us, and we will send him/her an Assignment of Capital Credits form. If the landlord will not or cannot agree to sign over the capital credits to you, we cannot make any changes to the check. MJM is required to give the capital credits to the person whose name is on the account.
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