Capital Credits

As a Cooperative, the consolidated net margins are assigned to the member on a pro-rata basis according to the total amount paid for their telephone service. These allocations are known as patronage capital (also called capital credits).

No. Capital credit allocations are a record of your pro rata share of the margins. Capital credits are reinvested to support the operation and growth of the business. Capital credits are retired and paid at the discretion of Colorado Valley Telephone Cooperative’s Board of Directors. Under Colorado Valley Telephone Cooperative’s Bylaws, the only time an account is retired in full is upon the death of the member.

Under the nonprofit provisions of the Bylaws for Colorado Valley Telephone Cooperative, Inc., each member is entitled to a notice of capital credits. This notice is only a statement showing the capital credits earned which have been allocated to your Membership capital account for the year indicated.

Your allocated capital credits remain on Colorado Valley Telephone’s books under your name and membership number. Please keep your mailing address current. When the Board of Directors approves the distribution of capital credits for a year in which you had service, you will receive a check.

In order for capital credits to be retired in the event of death, the account must be inactive/disconnected. Return the check along with a completed Capital Credit Request Form and any required documents to our office.