Capital Credits Returned to Members

SVEC’s board of directors has voted to retire over $3.9 million in capital credits. Those who were members in 2004 and/or 2022 will see a credit on their next bill, beginning June 5.

The return of capital credit funds, also known as a retirement, may be voted on for years in which a financial audit determines the cooperative’s revenues to have exceeded expenses. This is one of the key advantages to being a part of a member-owned electric cooperative.

It is the cooperative’s intent to return capital credits when financial conditions meet reserve requirements of the Rural Utilities Service and upon conditions outlined in the cooperative’s bylaws, which are available for your review here.

Before capital credits are returned, the cooperative must first satisfy all financial obligations. This is why it may take many years before credits are returned. The financial health of the cooperative depends upon its ability to take care of any debt that incurs. Revenues collected for services and capital credits held in member accounts allow SVEC to meet financial requirements and operate during the year. Once these obligations are met, the board of directors may vote to retire and refund the capital credits.

In recent years, the board has employed a hybrid approach for returns, to include some from the previous year so more current members see a return sooner.

If members from 2004 or 2022 have left the cooperative, checks will be mailed to them if more than $10. That’s why it is important you contact SVEC with your new address if you leave the service area.