Capital Credits

Capital Credits

North Arkansas Electric Cooperative will return $5,149,337 in capital credits to members in December. This will mark the largest capital credits retirement in NAEC’s history and bring the total returned to members to more than $36 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 operating expenses from the amount of money earned through rates. The remaining balance is called margins. The margins left over at the end of the year are allocated, or assigned, to each member’s account based on the member’s electric usage.

In the spring, each member receives a capital credit certificate detailing how much of the previous year’s margins was allocated to their 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?

Each year the NAEC Board of Directors evaluates the overall financial condition of the and decides the amount of capital, if any, to refund.

Will I receive a refund?

This year’s retirement represents 15.95 percent of the margins assigned for 1995, 91.07 percent of the margins assigned for 1996 and 16.09 percent of the margins assigned for 2017. Only members who purchased electricity from NAEC during the years above will receive a refund in 2018.

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?

Please call NAEC at 870-895-3221; email info@naeci.com; or visit our Salem, Mountain Home or Ash Flat office. We are open 8 a.m. to 4:30 p.m. weekdays.

As a not-for-profit cooperative, NAEC abides by the seven cooperative principles, one of which is members’ economic participation. Refunding capital credits truly exemplifies this principle.


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. To date, Operation Round Up has awarded more than $145,000 in college scholarships to recent high school graduates.

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 credits 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.