A quick guide to capital credits, why they matter, and why we’re sending you a check this year.

 

What Are Capital Credits?

Southwestern Electric Cooperative is owned by the people it serves — not investors. When you sign up for service with Southwestern, you become a member-owner.

If the cooperative brings in more money than it needs to cover operating costs and emergency reserves (cooperatives call that money margins), the extra funds are allocated to members in the form of capital credits. They represent your share of the co-op’s margins and your ownership in the system you help to build and maintain.

What’s Happening This Year?

Earlier this year, Southwestern’s board of directors approved a general retirement of capital credits. They authorized the return of credits from 1997.

In past years, current members received a bill credit during a general retirement. This year, that process is changing.

Why You May Receive a Check Instead of a Bill Credit

Your board of directors voted to distribute general retirement refunds by check when the amount is $20 or more. This allows members the flexibility to deposit their capital credit check in savings, use it to pay bills, or apply it to the purchase of household items.

• If your 1997 retirement amount is $20 or more: You’ll receive a check in the mail.
• If your refund is less than $20: You’ll see a bill credit on your next statement.
• Inactive members: No changes. Inactive accounts continue to receive refunds by check, as before.

When Will You Mail Capital Credit Checks?

We expect to mail checks in December.

Why Capital Credits Matter

Capital credits are a benefit of cooperative membership. Every time you pay your electric bill, you’re investing in infrastructure that powers our communities. When the co-op’s financial condition allows, we return that investment to you.

That’s the Cooperative Difference. It’s a system built on trust, accountability and shared ownership.

FAQ

What year is being retired? 

This retirement includes Capital Credits you accumulated during the year 1997.

What if I have an outstanding bill? 

As in previous years, if you have a past-due or outstanding balance, your Capital Credit refund will first be applied to bring your account current. Any remaining amount will be issued as a bill credit (if under $20) or a check (if over $20).

What about inactive members? 

The payout process for inactive (or former) members remains the same—a check is mailed to the last known address.

Why 1997 Credits?

Capital credits are retired on a cycle based on the cooperative’s financial strength, system needs, and board directives. This year, we’re returning credits earned in 1997. The amount you receive is based on how much electricity you purchased that year.

Why Am I Receiving a Check?

If you received electricity from Southwestern Electric in 1997 and the amount of capital credits you earned that year is at least $20, you’ll receive a check. This is your money, returned to you because you’re a co-op member-owner.

Do I Have Unclaimed Capital Credits?

We publish a list of unclaimed capital credits. You can view the latest list on our website at https://sweci.com/capital-credits. You can also call us at (800) 637-8667 during business hours.

Still Have Questions?

Our Member Services team is happy to help. Call us at (800) 637-8667.

Why am I getting a check this year instead of a bill credit?

In the past, we applied capital credit retirements as credits on your monthly bill. This year, our Board of Directors decided to send checks instead for retirements of $20 or more. This change makes it easier for you to see the direct benefit of your co-op membership.

If your retirement is less than $20, you'll still see it as a credit on your bill.

I wasn't a member in 1997. Will I get a check?

Only members who purchased electricity from Southwestern Electric during 1997 will receive this retirement. If you joined the co-op after 1997, you're still earning capital credits each year that may be retired in the future.

Questions?

Call us Monday-Friday, 8 a.m.-4:30 p.m., at (800) 637-8667. Our Member Service Representatives are happy to help you.