A rural electric cooperative is a nonprofit business that exists solely to provide its members with electricity. The members of a cooperative are the shareholders. Because of that, when the cooperative takes in more money than is needed to operate the business (margins), the members are entitled to a share (allocation). This allocation is based on the amount of energy used during the year. The more you buy, the higher your share of equity. When KIUC’s finances permit and upon approval by the Board of Directors, the money is returned to the members in the form of patronage capital retirement (refund). The remaining patronage capital is used as member equity.
Even if you close your KIUC electric account, your accumulated patronage capital equity will remain in your name. It's important to keep KIUC informed of your current address so that you will receive a check when the Board of Directors vote to do a general retirement.
Request for Unclaimed Patronage Capital Refund
In past years, KIUC issued checks to members, so it’s possible some members forgot to cash the check or accidentally threw it away. Every year, KIUC publishes a list of members to whom we owe a patronage capital refund. If your name appears on the list, you must apply for a refund. Please complete the refund form below and provide a copy of picture ID as proof the person requesting the refund is the same as the account holder.
You can mail in the form or bring it in to our office. If you have questions about patronage capital, please call 808.246.4300.
Please allow 45 business days for us to process your request.
Frequently Asked Questions
No. Since KIUC is non-profit and member owned, you do not receive interest or dividends on your patronage capital account.
When the cooperative is in sound financial condition and when there are excess funds left over at the end of the year, the Board of Directors and the co-op’s lender have the authority to approve capital credits to be retired or refunded to the membership. An exception is made when payments are made to estates of deceased members. In order to maintain financial stability and to be fair to all members, the estate retirement will be paid at the net present or discounted value. Or you can choose to receive the capital credits at the future scheduled retirement dates with no reduction.
The patronage capital that has accumulated in your account will remain in your name. It is important that you keep KIUC informed of your current address so that you will receive your check when a general retirement of patronage capital is made.
The following items are included: non-fuel energy charge, fuel and purchase power energy charge, customer charge, minimum charge, resource cost charge, streetlight (SL) fixture charge, demand charge.
Please consult with your tax advisor for any potential tax implications.
Margins are what are left over at the end of the year after KIUC has paid all expenses. Your share of any operating margins is credited to your patronage capital account. In other business organizations, this would be called profit.
When the cooperative takes in more money than what is needed to operate, the remainder is credited to members and allocated according to the amount of energy used.
As a non-profit member-owned cooperative, we are here to provide a service, not make a profit.
Your patronage capital account is not like a regular bank account and you cannot make withdrawals. As with any other business, it is necessary to maintain a certain amount of working capital to help the cooperative remain financially sound, thereby ensuring a stable, reliable electric provider for the benefit of the members we serve.