Tideland refunding $1.26 million in member equity for fiscal year 2025

On Thursday, November 20, Tideland EMC's board of directors approved a general retirement of member equity totaling $661,000 for members who had service with the cooperative in 1996. In addition to the general retirement, the cooperative anticipates that equity refunds to the estates of deceased members will total $600,000 by year-end. When combined, that represents a refund of $1.26 million for fiscal year 2025. 

Capital credits represent member margins that are collected through electric bill revenues and reinvested in the cooperative’s utility infrastructure. At the end of each year, Tideland’s expenses are deducted from revenue to determine the cooperative’s net operating margins. Those margins are proportionally allocated to each Tideland EMC member as capital credits based on a percentage of what each member individually paid for electricity during the calendar year. By utilizing member capital to maintain our electric system, Tideland is able to minimize its reliance on outside lenders thus reducing borrowing costs for the entire membership. That's why there is almost a 30-year lag between the time capital credits are allocated and ultimately retired. 

The $610,000 general retirement is being issued through a combination of checks and electric bill credits. Active account holders will receive a check during the month of December if their electric account is current at the time of distribution and if their refund is $50 or more. All other Tideland members with active accounts will receive a credit on their December electric bill if they had service with the co-op in 1996. Checks will be mailed to former members at their last known address for refunds of $50 or more. 

These capital credit refunds serve as an important reminder to members and former members to:

1) Keep your mailing address current with Tideland even if you no longer have active service so we can deliver future checks.

2) Make sure your estate planning makes reference to your Tideland membership so the executor can apply for any remaining capital credit funds

3) Avoid keeping accounts active in the names of deceased members. Any subsequent payments will continue to accrue to the deceased member's account. 

4) Unclaimed capital credits are eventually forwarded to North Carolina Escheats at the State Treasurer’s office.