CashBack is another term for the Board of Directors-approved distribution of allocated capital credits. It involves a two-step process.
- Capital Credit Allocation
As a not-for profit business, Northern Virginia Electric Cooperative annually allocates to
member accounts its net margins (profits) over and above the cost of doing business.
Current customers are notified annually of their share of the profits based on the amount of electricity they used in the previous year. Your annual allocation does not represent a cash balance in any type of account, but, rather, is your proportionate ownership share of the equity – or asset value – of NOVEC’s electric system infrastructure.
- Capital Credit Retirement
Over time, your annual capital credit allocations accumulate. As the cooperative’s financial condition allows, NOVEC’s Board of Directors authorizes retiring (returning) a portion of the capital credits to current and former members. Historically, that occurs annually through the CashBack program. Since 2000, NOVEC has returned more than $325 million in CashBack to current and former members.
When cashback is returned, current customers see a one-time credit on their monthly electric bill. Former customers receive a check if their CashBack balance is $5 or more. NOVEC asks former members to keep a current address on file at the co-op, so future capital credit disbursements can be properly mailed.
Unclaimed CashBack Refunds
CashBack refund checks are mailed to former members at their last address on file with NOVEC. And with every mailing, the U.S. Postal Service returns some of those checks as undeliverable. Names on this list can claim their CashBack refund by submitting the form accompanying their name on the web list. For more information call the Customer Care Center at 703-335-0500.
Additional CashBack Facts
- NOVEC continuously invests in its electric system infrastructure. As a result, your capital credit balance cannot be returned to you in full. Additionally, it is not cash, so it cannot be used as payment for a NOVEC electric bill or other NOVEC-related product or service.
- When an account owner dies, the accumulated capital credit balance is paid to the estate, with proper documentation. The account will then be closed.
- NOVEC’s approach to capital credits is a long-established and accepted practice, and is common among cooperatives of all types.
- Capital credits are unique to cooperatives and are one of the many value-added benefits of being served by NOVEC.