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North Star Electric Cooperative is a member-owned, not-for-profit organization, meaning we operate at cost for the benefit of our members. At the beginning of every year, any excess revenues, or margins, from the previous year are allocated to our members and later paid out in the form of capital credits. This means you, as a member-owner, benefit from any margins produced by the cooperative.

How are capital credits allocated?
Any excess revenue (margins) remaining and approved of by the board of directors at the end of the year are allocated or assigned to your account as capital credits based on the amount of energy you purchased during the year. Your account will accumulate capital credits each year you are an active member with us. Each spring, your bill will include information about your capital credits earned the previous year and your accumulated capital credit balance. If you leave the membership of the cooperative, we will mail you a notice about your previous year’s allocation amount.
When will I get paid?
Since sufficient funds must be kept on hand to make system improvements, build new lines, and be available for contingencies, capital credits are normally retained for a while for these purposes. Each year the board of directors evaluates the financial position of the cooperative and considers a payment of capital credits. If they decide to pay out capital credits, you will receive a credit on your bill if you are an active member. Capital credit payments for prior members will be sent in the mail.
Is it taxable?

If you’re wondering about income tax issues and capital credits, capital credits are generally tax-free if the property served was used strictly as a residence. If the property was used for business purposes, members should contact their tax advisors.

Could I have unclaimed capital credits?
On occasion, we lose touch with members when they move and change addresses, and their checks are returned to us by the post office. If you think you might have unclaimed capital credits please contact us. Our capital credit expert is Tessa Strohl, and she can be reached in Baudette at 218-634-2202 or toll free at 888-634-2202. Every spring, we publish in our Enlightener a list of former members we have lost contact with. Please contact us if you see your name, and we will update our records. Additionally, if you see the name of someone you know on this listing, please suggest they contact us as well. We would like to see our former members get the capital credits due to them.