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Capital Credits Image North Arkansas Electric Cooperative will return $1,547,409 in capital credits to members in December 2021. This marks the 34th consecutive year NAEC has refunded margins and brings the total returned to members to $42 million since the co-op’s founding in 1939.

What are capital credits?

NAEC is owned by the members we serve. At the end of each year, the co-op subtracts, on a taxable basis, operating expenses from the amount of money earned through rates. The remaining balance is called taxable margins. The taxable margins left over at the end of the year are allocated, or assigned, to each member’s account based on the amount of electricity for which each was billed. 

Each member receives a capital credit certificate annually detailing how much of the previous year’s margins was allocated to his or her account. The capital is then retained by the co-op to use as operating capital for a period of time and then returned as financial conditions permit. 

How does NAEC decide how much to return?

The board evaluates the overall financial condition of the co-op and decides the amount of capital, if any, to refund. 

Will I receive a refund?

The retirement represents the remaining 19.37 percent of the margins assigned for 1997, 6.81 percent of the margins assigned for 1998 and 4.48 percent of the margins assigned for 2020. Only members who were billed for electricity during the years above will receive a refund in 2021. 

How are refunds given?

Refunds will be distributed after Dec. 1. Members with a refund of less than $50 will receive a credit on their December statement. Members with a refund of $50 or more will receive a check in the mail. Non-active members with a refund of more than $2 will receive a check as well. 

How do I get more information on my capital credits?

Our lobbies remain closed to help limit the spread of the coronavirus. If you have questions about capital credits, please call 870-895-3221 or email We are open from 8 a.m. to 4:30 p.m. weekdays. 

NAEC operates as a member-owned not-for-profit cooperative. Refunding capital credits exemplifies the cooperative principle of members’ economic participation. 

If you would like to help local students continue their education, then please consider joining NAEC’s Operation Round Up® program. Members volunteer to have their electric bill “rounded up” to the next even dollar amount each month. 

Enroll by completing this form, visiting an NAEC office or calling 870-895-3221.

Some NAEC members support Operation Round Up by donating their capital credit refund. If you would like to donate yours, please endorse your check and mail it back to NAEC. All donations are gladly accepted and tax deductible.