Capital Credits

Capital Credits

South Central Electric Association is a Cooperative. The difference between a cooperative and another kind of business is that we return our margins back to the membership.Members collect capital credit checks at SCEA annual meeting

We attempt to set electrical rates so that the money you pay will cover operating expenses and give us a small margin in order to satisfy our banker(s), Cooperative Finance Corporation, Rural Utility Service and CoBank.

Whenever we have any margins remaining at the end of a year, we credit them back to the membership as Capital Credits. Your share of the Capital Credits depends on the amount you have paid to the Cooperative for electricity that year.

South Central Electric retains your Capital Credits and uses that money as operating capital. By retaining Capital Credits we reduce our need for borrowed operating money. As money is available, and as the Board decides, we pay Capital Credits to all people who were members in a certain year. Upon the death of any patron, who is a natural person, Capital Credits shall be paid in full to the estate upon proper request of legal representative of estate.

If you move or leave South Central Electric's lines, call or write South Central Electric and let us know your forwarding address. As Capital Credits are paid in the future, they will be sent to your last known address.