SEC Members to Receive $3.5 Million in Capital Credits
CONTACT: Allan Sharrett
CREWE, Va – Southside Electric Cooperative (SEC) is returning $3.5 million in capital credits to its members in December, marking the second highest retirement amount in the co-op’s 78-year history.
Following last year’s record-breaking capital credit retirement of $5 million, SEC’s Board of Directors has authorized another sizeable refund to former and active co-op members.
“The opportunity to return these funds to our member-owners is a point of pride and enthusiasm for the Cooperative. The refund of capital credits is a direct benefit of co-op membership – and goes to the very heart of what it means to be an SEC member,” explained Jeff Edwards, SEC’s president & CEO.
As a not-for-profit electric utility, any revenue SEC earns over and above the cost of providing safe and reliable electric service are considered margins, which represent the members’ equity in the co-op. SEC finances its yearly operations using this equity, with the intent that these funds will be repaid to members in later years, as the Cooperative is financially able to do so. This concept is an essential part of how electric cooperatives operate successfully, and responsibly.
Members earn capital credits based on the amount of capital contributed to the Cooperative though the payment of monthly electric bills. The more electricity that is purchased, the greater the accumulation of capital credits in a members’ account. No special action is required to start an account – membership in the Cooperative activates this benefit automatically.
Beginning this December, members receiving less than $25 will be issued a credit on their monthly bill. Those with refunds equal to or above $25 will continue to receive a check through the mail. 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.
“Allocating and retiring excess revenue to members helps distinguish cooperatives,” added Edwards. “All members have an economic stake in the cooperative, both as consumers and owners. Capital credits, therefore, benefit the individuals, businesses and organizations we serve, affirming SEC’s commitment to its members.”
Over the last three decades, SEC has returned more than $47 million in capital credits to its membership.
Southside Electric Cooperative (SEC) is a not-for-profit, member-owned electric cooperative that serves over 55,000 homes and businesses in portions of 18 counties in central and southern Virginia. Headquartered in Crewe, SEC has district offices in Altavista, Crewe, Dinwiddie and Powhatan. For more information, visit www.sec.coop/CapitalCredits.