South Central returns $16.8 million to members and former members in 2026
As a cooperative, we’re different from other kinds of utilities. We operate as a not-for-profit provider, so any money that is left over after all our bills are paid is eventually returned to you, our members.
Last month, we returned roughly $16.8 million to members and former members of the cooperative — our largest capital credit retirement in the 90-year history of our cooperative. If you were a cooperative member in 2005, and still are today, you received your share of this retirement as a credit on your June bill. For many of these members, it may have covered your entire June balance, and some of your balance in July. Members receive capital credits that are calculated based on your usage.
1 — Members pay their bills
Money comes in from members when they pay their electric bills. In addition to your purchase of power, a portion of your bill represents your share of the funds needed for your cooperative to operate.
2 — The co-op pays expenses
Money goes out to pay co-op expenses. Members’ dollars are pooled together and used as operating capital so that the co-op can provide reliable service and cover expenses.
3 — Money is allocated to members
At the end of the year, if money is left over, it is allocated back to members. Active members see an allocation statement as part of your March electric bills. Your allocation is determined by your electric usage in the previous year. The allocation isn’t funds that are immediately available to you — it is used by the cooperative as operating capital for a period of 20 years, and if financial conditions allow, capital credits are retired, which means they are paid back to members.
4 — Retirements are set by the board
Each spring, trustees review capital credits as well as the financial condition of the cooperative. Once a retirement is made, funds are returned to active members as bill credits, or as a check to former members. Credits may also be returned early to the estate of a deceased member.
5 — Unclaimed capital credits
In August and September, the cooperative publishes an online database of unclaimed capital credits. This means that we no longer have valid contact information for a former member who is owed capital credits. Former members have 60 days to claim these credits that are owed to them before they are reallocated back to the cooperative, which then allocates them to current members.