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Capital Credit Summary
Capital Credit Allocation
Capital Credits of Suwannee Valley Electric Cooperative (SVEC) represent a member’s ownership stake in the cooperative. The capital credits are not equivalent to cash or a liquid asset. The capital credits are representative of the amount invested by any particular member into the electrical system of the cooperative. This includes all equipment regularly observed by a member including poles, substations, lines, transformers and other various facilities.
All members’ capital credits together make up the cooperatives equity. The cooperative needs this equity to finance new facilities and improvements to the cooperatives facilities without relying entirely on costly loans. On average the cooperative finances 40% of its facilities through equity.
Over time SVEC will pay the member back their contribution into the cooperative. This process is done on a rotation and takes 30 years on average. This process is commonly referred to as the Capital Credit Retirement. Each year the Board of Trustees assesses the financial condition of the cooperative to determine if the cooperative is in a position to pay back a portion of the ownership stake past and current members have in the cooperative.