What are capital credits?
Capital credits, also known as CashBack, represent your individual portion of the Cooperative’s net profits, which are shared by all of NOVEC’s customers. Because NOVEC is a not-for-profit business, all revenues over and above the cost of conducting business each year are allocated to Cooperative customers.
How will I receive my CashBack?
Current customers receive a credit on their bill. There will be a CashBack line item on the billing statement. Customers no longer on the NOVEC system are mailed a check with a notice attached to it. The notice will indicate the year for which the refund applies. Checks are not issued to former members in amounts less than $5.
When/how much will I be paid?
General Payment (current and former customers): While annual refunds are not guaranteed, general CashBack payments have been made to current and former customers throughout the Cooperative’s history. Customers receive a set percentage of the board-approved returns. The percentage is based on each customer’s bills from the previous year. Therefore, only customers who were NOVEC customers the prior year are eligible to receive CashBack.
I have many current sub-accounts. Which ones get the CashBack credit applied?
Our computer program begins with the lowest numbered account (-000) and works its way up (-001, -002, etc.). If the lowest numbered account has a bill due, then CashBack credits are applied that account up to the amount of the bill. If there is still an amount left over to be applied, then the program looks to the next higher number. This process continues until the amount to be paid is used up. If there is more to be applied than bills to be paid, then the highest numbered account receives the remainder.
If this retirement is only returning a percentage of my balance, what happens to the rest of it?
A portion of CashBack credits are re-invested in the Cooperative to build and repair lines, improve system reliability and to help us provide better service to you. Using these funds for operating costs offsets the need to borrow money. By not having to pay the interest for borrowed money, NOVEC can keep its costs down and retire more CashBack credits in upcoming years.
Who decides how much CashBack credits are returned or invested each year?
The board of directors determines how much to return to customers and how much to re-invest in the Cooperative. NOVEC directors are elected by NOVEC customers at the annual meeting to ensure local accountability. The Cooperative Living magazine, mailed monthly to each customer, contains election, candidate and Annual Meeting information.
I haven’t been a customer for many years. How long will it take for me to get the whole balance?
It’s impossible to say for sure. The board of directors continually evaluates the Cooperative’s capital credit policy. The unreturned capital credits provide the Cooperative with needed infrastructure capital that assures financial stability. According to NOVEC bylaws, the only time all CashBack credits must be paid is if the Cooperative dissolves (goes out of business).
If it’s my money, why can’t I have it all now?
When you apply for electric service with NOVEC, you sign an agreement to be bound by all policies, procedures and bylaws of the Cooperative. According to NOVEC bylaws, the only time all CashBack credits must be paid is if the Cooperative dissolves (goes out of business). The board of directors may decide to return some of the CashBack credits before that time, if they feel the Cooperative’s financial condition won’t be impaired by doing so. CashBack cannot be paid until the board makes a decision to retire all or part of the credits for a particular year.
What if I moved away, and have unclaimed CashBack refunds?
CashBack refund checks are mailed to former members at their last address on file with NOVEC. With every mailing, the U.S. Postal Service returns some of those checks as undeliverable. That’s why we encourage former customers to update NOVEC with future address changes. A list of unclaimed checks can be found online. Names on this list can claim their refund by submitting the form accompanying the Web list, or by calling customer service at 703-335-0500 or toll-free 1-888-335-0500.