The Suwannee Valley Electric Cooperative (SVEC) Board of Trustees has elected to return $1.1 million to the co-op’s members through the retirement of capital credits.
“Members of SVEC have advantages over customers of other types of utilities,” says Director of Communications Jon Little. “One of those advantages is capital credits. That’s money back in an amount based on how much electricity the member has purchased.”
As a not-for-profit cooperative, SVEC operates at cost, collecting just enough money to run and expand the business. That money is used to cover expenses that keep the electricity flowing. Expenses like poles, wires, trucks, and a qualified staff.
At the end of the year, revenues can be more than expenses. While most utilities keep leftover money as profit, SVEC allocates – or sets aside – that money for its members as capital credits. When it’s financially safe to do so, the co-op retires – or returns – capital credits to members.
Considering the continued financial strength and sound management of the cooperative, SVEC’s trustees have elected to retire $1.1 million in capital this year, bringing the total amount of capital credits returned to members over the life of the cooperative to $14.4 million.
Consumers who were members of SVEC at any time from 1991 through 2016 can expect to receive a capital credit retirement. Members with retirements of $5 or more will receive a check. A retirement of less than $5 will be applied as a reduction to the member’s next bill.