Carroll Electric operates as a not-for-profit electric cooperative under Section 501(c)(12) of the Internal Revenue Service (IRS) Code. As part of this not-for-profit status, the Cooperative allocates margins (profits) to each member in accordance with industry standards and in conformance with state and federal laws. Even as a "not-for-profit" organization, margins must be attained to ensure our lenders the Cooperative has the financial health to repay its loans. These allocated margins are more commonly referred to as patronage capital and are paid back to the membership as financial conditions permit.
Following an audit of the Cooperative's financial statements, patronage capital is allocated each year to the membership based on each member's proportional share of business with the Cooperative.
Patronage capital retirements for a member who had service at more than one location are consolidated on one check. For example, if you had three separate accounts during the year associated with the retirement, you will receive one check for all three of your accounts.
In the case of death, patronage capital typically belongs to the member's estate. Because the settlement of each estate varies, we ask you to direct all patronage capital inquiries related to deceased members to the Accounting Department at our headquarters office, available by calling 800-432-9720.