Capital Credits FAQ
Frequently Asked Questions
About Capital Credits
Click on the question to read the answer.
How do I find my customer number?
If you have received a letter regarding Capital Credits, your customer number is on the top left of the letter above your name and address. The customer number begins with the letter “C.”
How am I notified of my capital credits allocation?
BSU makes available capital credit statements on an annual basis. Complete this form to request a capital credit statement. BSU will use this information to verify your membership and email you a statement indicating the amount of your capital credits.
How are capital credits calculated?
A member’s capital credit is based on their annual utility service billing, as compared to bills received by all members. The year’s revenue, less operating expenses (including depreciation and debt payments) and reasonable reserves determines the amount available to credit.
Are capital credits earned each year that I am a member?
No. During years in which operating expenses (including depreciation and debt payments) and reasonable reserves exceed revenue, there are no credits to allocate. Credits are allocated only if there is a positive net margin during a given year.
If I am no longer a member of BSU, do I earn capital credits?
No. You are only allocated credits for the years you are an active member. However, BSU maintains a record of all previous and current capital credits earned by each member.
How can I find out the amount of my capital credits?
Complete this form to request a Capital Credit Statement. BSU will use this information to verify your membership and email you a statement indicating the amount of your capital credits.
Why are credits retired only for certain years?
Capital credits are allocated to members only during years in which there is a positive net margin, which means revenue is greater than operating expenses (including depreciation and debt payments) and reasonable reserves. The Board of Directors evaluates the financial condition and needs of the Company to determine when capital credits will be retired.
How often are capital credits refunded?
There is no fixed retirement schedule for capital credits. The Board of Directors regularly evaluates the financial condition and needs of the Company. Retirement occurs periodically when the Board determines that the Company’s operations, capital improvement requirements and reserve levels permit. Retirement begins with the earliest years, according to BSU Bylaws.
Why is my refund less than amounts on the notices I received in the past?
Prior to 2015, capital credit allocation letters included contributions to capital, such as Aid to New Construction (capacity) Fees and water and wastewater pipelines built in new developments. These contributions are part of the treatment plants and transmission lines that serve members each day. They are not excess revenue, and are not subject to retirement. Since 2015, the annual capital credit notices no longer include these contributions.
Is it possible to receive a lump sum payout for the balance on my account?
No. Retirement occurs only when the Board of Directors determines that the Company’s operations, capital improvement requirements, and reserve levels permit.
What happens if I move out of BSU’s service area?
BSU will maintain a record of capital credits earned while you were a member for future retirement. Please keep a current address on file with BSU. You may do this using the Update Contact Information form.
Do my allocated capital credits earn interest?
No, interest is not paid on capital credits.
Why haven't I received a check or credit?
If you were a member during a year in which BSU’s Board of Directors authorized a retirement, you may be eligible to a credit on your account if you are a current member, or a check in the mail if you are a former member. If you were a member during those years and did not receive a credit or check, please email email@example.com and provide the following information:
- Member name
- Name on account
- Customer number (found on annual capital credit notice)
- Current mailing address
- Telephone number
We will respond as quickly as possible.
I received a check in the name of a deceased family member. What should I do?
If a member has passed away, the member’s heir is entitled to payment. To help us process this refund, complete and mail the Affidavit Regarding Deceased Member form along with the check received. BSU will use this information to verify relationship to the member and re-issue a check once all required paperwork and original check is returned to BSU.
What happens to checks returned to BSU?
Can I use capital credits to pay my bill?
Current members entitled to a credit when retirement occurs will receive a credit on their bill. Otherwise, credits cannot be used to pay for service.