Capital Credits FAQs

If you have an address change, please keep the cooperative informed so SVEC may issue your capital credits retirement in the future when approved by the board. At the time of retirement, if SVEC does not have updated mailing information, then retirements will be designated as unclaimed and revert to the cooperative. Please see the list of unclaimed equity for more information.

Current members receive a bill credit, while anyone who no longer receives electric service from SVEC is mailed a check.

Under the cooperative business model, it’s customary for SVEC to hold capital credits as equity in member accounts for an extended period. This allows SVEC to fund capital projects and unplanned expenses over time.

Capital credits cannot be refunded all at once because they help the cooperative remain financially sound, ensuring a stable, reliable electric provider for the benefit of the members we serve.

Each year, the SVEC board of directors approves the annual allocation of equity into members’ accounts. Amounts shown on notices do not necessarily reflect the amount of capital credits that might be returned later.

The equity allocation is a record of your ownership in the cooperative, based on the amount of electricity you paid for in the previous year. SVEC uses these funds as operating capital for investments such as system reliability improvements and maintenance.

The SVEC Board of Directors decides whether to retire capital credits every year, usually in the month after approving the annual notice of equity allocation. This decision is based on many factors, including restrictions put in place by government institutions and the overall financial health of the cooperative.