Member Capital

Member capital is your share of the money that remains at the end of the year after we pay our operating expenses.

Member capital is allocated to members annually, based on how much they paid in electric charges in a given year. On your monthly bill, you will see the amount of member capital allocated to you the previous year, the amount of member capital returned to-date, and your remaining member capital balance. Each year, we provide updated information.

Each year VEC's Board of Directors determines whether VEC is in a strong enough financial position to refund a portion of member capital and if so, the amount of any refund. If VEC is in a strong enough position to offer a refund, that amount is applied to your bill in the form of a bill credit.

For example, the VEC Board of Directors authorized the following member capital refunds:

• 2013: $850,000 ($425,000 for 1997 and $425,000 for 2012)
• 2014: $500,000 ($250,000 for 1997 and $250,000 for 2013)
• 2015: $500,000 ($250,000 for 1997 and $250,000 for 2014)
• 2016: $500,000 ($250,000 for 1997 and $250,000 for 2015 )
• 2017: $1 million ($750,000 for 1997 and $250,000 for 2016)
• 2018: $1.5 million ($1,250,000 for 1997 and $250,000 for 2017)
• 2019: $1.2 million ($950,000 for 1997 and $250,000 for 2018)
• 2020: $1.4 million ($250,000 for 1997 and $1.15 million for 2019)
• 2021: $1.6 million ($1,100,000 for 1997 and $500,000 for 2020).
• 2022: $1.65 million ($1,400,000 for 1997 and $250,000 from 2021)
• 2023: $900,000 for 1997

Refund amounts are a percentage of a member’s total member capital allocation for those years. Active members in good standing who were members during the refunded years can expect to receive a bill credit in the fall. Inactive members can expect to receive an application to receive a refund. Once the application is returned, those inactive members can expect to receive payment via check.

According to Vermont statutes, unclaimed member capital credits are considered abandoned after three years. There will be a $5 dormancy fee on unclaimed member capital prior to submission to the state of Vermont’s Unclaimed Property Division. At any time, the owner may contact the Unclaimed Property Division at 802-828-2407 to get instructions on how to claim this property. This property will be held in perpetuity until the rightful owner or heir claims it.

In order to provide safe and reliable service to members, VEC must retain a reserve of some member capital so VEC cannot send members refunds for their entire allocations. These capital funds allow the co-op to make upgrades to the electrical system, secure stable power supply contracts, and make other beneficial investments.

The information printed on your bills is the total member capital for all your accounts combined. You can contact member services for a breakdown of each account.

The balance that you earned will remain in your name. Please keep VEC informed of your current address so we can notify you if VEC refunds member capital in the future. When you move away, you will no longer receive additional member capital allocations.

If you are listed as a member during the years authorized for a member capital refund, you may be eligible to receive a refund check. You must be in good standing with the co-op and not have a remaining balance due on your VEC account. Additionally, the member capital refund must exceed $10 in order for VEC to issue a refund check per the VEC Board of Director's policy.

Former members eligible to receive a refund check will be notified via mail (to the last address on file) and will be asked to complete a Refund Request Application. This application, along with proof of identification, must be returned to VEC in order to claim the refund check. It's very important that you keep VEC informed of your current address to prevent a delay in receiving your refund.

To see a list of former VEC members with available member capital distributions, click here. 

Former members can submit a Refund Request Application at any time.

In the event of the death of a member with a member capital balance, the surviving spouse should contact member services at 1-800-832-2667 to transfer the account into the surviving spouse’s name. If the account remains active, the surviving spouse will continue to earn member capital and receive future distributions.

If there is no surviving spouse, the heir(s) will need to furnish a copy of the death certificate and information that establishes who the beneficiary of the estate is. For more detail, please contact member services at 1-800-832-2667.

A cooperative is a not-for-profit business that is owned and operated by its members. VEC operates differently from shareholder-owned utilities in that we are not designed to create a profit for shareholders. Our customers are also our owners. Since we are owned by the customers we serve, all earnings are allocated to you.