Wiktor Wise
Ozark Electric is a cooperative, meaning it is owned and controlled by its members who use its services. As a cooperative, Ozark Electric does not earn profits but instead allocates revenues remaining after expenses to its members in proportion to their usage of the cooperative's services. Ozark Electric members are notified of their capital credit allocations through the Electric Sparks/Rural Missouri newsletter. Capital credits are a return of money paid for electricity in a previous year and are generally not considered taxable income for residential consumers. There is also an Ozark Federal Credit Union, which is a local banking service.
| Characteristics | Values |
|---|---|
| Type of business | Cooperative |
| Members | More than 5,000 |
| Location | Mt. Vernon, MO 65712 |
| Substations | Wesley, Hindsville, Goshen |
| Member benefits | Capital credits, lower rates |
| Capital credits | Returned annually based on the cooperative's financial position |
| Credit allocation notification | Electric Sparks/Rural Missouri newsletter, June/July billing statement |
| Capital credits retirement method | First-in, First-out (FIFO) |
| Capital credits refund | Applied to electric bills or sent via check |
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What You'll Learn
Ozark Electric is a cooperative
Capital credits are a key feature of Ozark Electric's cooperative structure. These credits represent a return of money paid for electricity in a previous year and are generally not taxable income for residential consumers. Each year, the board of directors determines whether the cooperative's financial position allows for the return, or retirement, of capital credits and the amount to be returned. The board also decides on the method for returning capital credits, such as the First-in, First-out (FIFO) method used in 2023.
As an owner in the cooperative, members receive their capital credits annually when the cooperative's revenues exceed expenses. These credits are returned in proportion to the amount of electricity used by each member. Ozark Electric notifies its members of their capital credit allocations through the "Electric Sparks/Rural Missouri" newsletter and their billing statements.
In addition to financial benefits, being a member of Ozark Electric Cooperative also comes with the advantage of having a say in the decision-making process. The cooperative is governed by a board of directors who are elected by the members. This democratic structure ensures that the cooperative is controlled by the people who use its services and that the members' interests are always prioritized.
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Members receive capital credits
Ozark Electric Cooperative notifies its members of their capital credit allocations annually through the "Electric Sparks/Rural Missouri" newsletter. Members also receive notifications of the previous year's allocation amount on their June/July billing statement.
Each year, the board of directors decides whether the cooperative's financial position allows for the return or retirement of capital credits and determines the method for doing so. In 2023, the board authorized the retirement of $2,547,026 in capital credits for 2003, 2004, and half of 2005. Members who were active during these years and are still members will receive a credit on their December 2023 bill. Former members during those years will receive a check in the mail.
Capital credits are a return of money paid for electricity in previous years and are generally not considered taxable income for residential consumers. They are one of the advantages of being a member of an electric cooperative. Unlike other businesses, cooperatives do not earn profits in the traditional sense. Instead, any margins or revenues remaining after expenses are allocated to the members in proportion to their usage of the cooperative's services.
Capital credits in a member's account belong to the member's estate. If a member passes away, their heir can submit an Affidavit of Heirship to claim the deceased member's capital credit retirement. The board of directors has a fiscal responsibility to maintain the financial integrity of the cooperative while providing competitive rates and allowing the return of capital credits to members.
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Credits are returned annually
Ozark Electric Cooperative is a business that is owned and controlled by the people who use its services. It does not earn profits like other businesses. Instead, any margins or revenues remaining after expenses have been paid are allocated to the members in proportion to their usage of the cooperative's services. These margins are known as capital credits and are returned to members annually.
Each year, the board of directors decides whether the cooperative's financial position allows for the return of capital credits and, if so, the amount to be returned. The board also decides the method for returning capital credits. For example, in 2023, the board authorized retiring capital credits using the First-in, First-out (FIFO) method. This meant that the capital credits that had been invested in the cooperative for the longest time were returned first.
Capital credits are a return of money paid for electricity in a previous year and are generally not considered taxable income for residential consumers. They are a benefit of being a member of an electric cooperative, as members are both consumers and owners. As an owner, your investment is returned to you in the form of capital credits every year the cooperative's revenues exceed its expenses. These credits are returned in proportion to the amount of electricity you used that year.
If a member is no longer active, they will receive a check in the mail for their capital credits. If a member has passed away, the heir of their estate should submit an Affidavit of Heirship to claim the deceased member's capital credit retirement.
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Ozark Federal Credit Union exists
The credit union's website also provides a range of resources and alerts to help members protect their personal and financial information. This includes information on common scams and strategies to avoid them. Additionally, Ozark Federal Credit Union prioritises financial education, as evidenced by its celebration of Financial Literacy Month. During this month, the credit union provides essential tips and strategies for members to improve their financial wellness and work towards a secure financial future.
The credit union's slogan, "Your Money, Your Voice, Your Credit Union," emphasises its commitment to member-centric services and financial empowerment. This is further demonstrated by their provision of smart money strategies and scam alerts, ensuring that members can make informed decisions about their finances and protect their personal information.
Overall, Ozark Federal Credit Union's existence is characterised by its dedication to serving its members' financial needs and providing the tools and resources necessary for them to thrive. Through a combination of educational initiatives, security alerts, and personalised services, the credit union strives to create a secure and empowering financial environment for its members.
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MECE Credit Union also serves electric cooperatives
Ozark Electric is a cooperative, or co-op, meaning it is owned and controlled by the people who use its services. As such, any margins or revenues remaining after expenses have been paid are allocated to the members in proportion to their usage of the cooperative's services. Ozark Electric members are notified of annual capital credit allocations through the "Electric Sparks/Rural Missouri" newsletter, as well as on their June/July billing statements. Capital credits are a return of money paid for electricity in a previous year and are generally not taxable income for residential consumers.
Ozark Electric Cooperative has more than 5,000 members and provides updates on power outages through its website. In 2023, the Ozark Electric Co-op Directors authorized the retirement of $2,547,026 in Capital Credits for 2003, 2004, and half of 2005 to Cooperative members who were active during these years.
Ozark Border Electric Cooperative, another cooperative, has returned over $27 million in capital credits to its members since 1996. In 2024, the board of directors voted to return $1,100,000 in capital credits to cooperative members, which would be applied to the June 2024 electric bills for members with active accounts.
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Frequently asked questions
No, Ozark Electric is a cooperative, or co-op, which is owned and controlled by its members, i.e. the people who use its services.
Members of the cooperative are refunded their capital credits, which are a return of money paid for electricity in a previous year. In 2023, the cooperative authorized the retirement of $2,547,026 in capital credits for 2003, 2004, and half of 2005.
Each year, the board of directors decides whether the cooperative's financial position allows for the return of capital credits, and if so, how much. The board also decides the method for returning capital credits.
Yes, there is the Ozark Federal Credit Union, which offers services such as savings accounts. There is also the MECE Credit Union, which has been serving electric cooperatives since 1975.
