Capital Credits FAQ

What are capital credits?

Capital credits are your reward for doing business with your cooperative. RTC uses capital credits to operate and to make capital improvements. By using capital credits, RTC is able to hold down the cost of service and provide state-of-the-art service to you the member-owners.


How are capital credits earned?

You accumulate patronage each year you receive local telephone service and other telecommunication services from RTC*. At the end of each fiscal year the cooperative’s margin, the excess after operating costs and other expenses, is determined. The margin is allocated to you, the member, in the form of capital credits. The capital credits remain in your membership account until the board of directors authorizes the release of capital credits.


What does the allocation statement tell me?

The allocation statement tells you how many capital credits were earned in that particular year.


How does RTC decide what to pay out?

RTC’s Board of Directors makes this decision by looking at the cooperative’s financial condition, cash flow and upcoming projects. The First In First Out (FIFO) and Last In First Out (LIFO) methods are currently used for capital credit retirements.


What happens in the case of an estate?

The individuals handling the final affairs of an estate must apply to have the capital credits released. The RTC Board of Directors reviews each request at a board meeting and determines whether the cooperative will release the capital credits.


What happens in the case of a closed business?

Capital credits associated with a closed business are distributed only by general retirements, which are decided on by RTC’s Board of Directors. See “How does RTC decide what to pay out?” above.


What if I move out of RTC’s service area?

It is very important that you keep us informed of your current mailing address. If we can’t find you it is very difficult to send you your capital credit dollars. Click here to view the list of prior customers with outstanding checks. if you know how we can contact any of these former patrons, please call RTC at 888.862.3115 or email rtc@restel.com.


*Customers in some exchanges are not yet earning capital credits as there is no margin to allocate.

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