SEC returns $2.5 million credit
Published 11:00 am Wednesday, December 28, 2016
Southside Electric Cooperative (SEC) recently announced the retirement of $2.5 million in capital credits for 2016. This December, 58,600 active and former co-op members will receive capital credits.
“The cooperative is happy once again to have a capital credit retirement and be able to provide refunds to our members,” said Dan Hammond, SEC’s chief operating officer. “Capital credits are an integral part of what makes a cooperative different from other businesses. We’re always glad to return these funds to our member-owners when the cooperative is financially able to do so.”
Any revenue that SEC, a not-for-profit electric utility, earns over and above the cost of providing safe and reliable electric service is considered margins, representing members’ equity in the co-op. This equity allows SEC to finance its yearly operations, with the intent that these funds will be repaid to members in later years. This concept is an essential part of how the cooperative operates both successfully and responsibly.
Members earn capital credits based on the amount of capital contributed to the cooperative through the payment of monthly electric bills. The more electricity that is purchased, the greater the capital credit account. No special action is required to begin receiving capital credits — membership in the cooperative activates this benefit automatically.
Those receiving less than $25 have been issued a credit on their monthly bill. Those with refunds equal to or more than $25 will receive a check through the mail.
SEC members who may be leaving the cooperative are encouraged to provide SEC with a current mailing address so that capital credits can be returned as they are retired.
During the last three decades, SEC has returned more than $49 million in capital credits to its membership. That includes about $11 million in the last three years.