Capital Credits

At the August 9, 2023, Alger Delta Board of Directors meeting, the Board tabled the decision to retire capital credits this year until the January 17, 2024 meeting. This additional time will give us a clearer picture of where the cooperative stands financially after seeing the impact of the recent rate increase that was implemented on July 1, 2023.


Capital Credit Self Claim Form

Unclaimed Capital Credits List 

We need your help! 

As part of the retirement process, a portion of capital credits are unclaimed because we are unable to locate certain members. We have listed the names of members who are entitled to capital credits. Please review the list in case you recognize your name or the name of someone you know.

     Capital Credit Estate Form

We have changed the way we pay the capital credits of deceased members. A new form, which is a request for payment of capital credits of a deceased person, needs to be filled out and returned before we can submit it to the Board of Directors for approval. When doing an estate retirement, it is retired at a discounted rate as it reflects the Cooperative’s weighted cost of capital. We also need supporting documents that you are the rightful heir. For example, if you are listed as the informant on the death certificate, the personal representative on the estate, the trustee listed on the trust, or the heir/personal representative listed on a will. We need documentation supporting that you are the heir. 

If you are requesting a check rewrite, the original check should be voided and returned to the office at:

426 N 9th St

Gladstone, MI 49837.

Contact us with questions at 800-562-0950.

What Are Patronage Capital Credits?

Patronage Capital Credits reflect each member’s ownership in the cooperative. Electric cooperatives like Alger Delta are non-profit corporations. Alger Delta does not earn profits for investors. Instead, any margins or revenues related to the sale of electric service remaining after all expenses have been paid are returned to the cooperative’s members in proportion to their electrical usage.

How are Patronage Capital Credits returned to members?

"Retiring" – that is – paying back or returning Patronage Capital Credits is a two-step process:

Step 1: Allocation - An allocation determines your share of the cooperative’s margin in a particular year. Margins are "allocated" or assigned to members who belong to the cooperative during the year in which a margin is generated. The allocation is based on how much energy the member used as a proportion of the overall electrical usage for that year. Each member’s portion is referred to as a "capital credit allocation."

Step 2: Retirement - Once Patronage Capital Credits are allocated they are retained by the cooperative for some number of years. The number of years can change based on the overall financial performance of the cooperative and other factors. Patronage Capital Credits are retained because Patronage Capital Credits are the most significant source of equity for the cooperative. Equity is used to help meet the expenses of the cooperative, such as paying for new equipment to serve members and repaying debt. Patronage Capital Credits help keep energy rates affordable by reducing the amount of money that must be borrowed to grow and/or maintain Alger Delta’s existing electric system.

When will my Patronage Capital Credits be retired or paid to me?

That depends on how well the cooperative is doing from year to year. The board of directors is charged with reviewing the cooperative’s financial position and determining whether or not to declare a retirement (your cashback payment).

How often are you going to notify me about my Patronage Capital Credits?

Alger Delta will send you a notice every year telling you how much Patronage Capital Credits are allocated to you and notify you if the board of directors has elected to retire Patronage Capital Credits. After 2013, the notice will be included in your electric bill.