Following significant costs due to Hurricane Beryl, dead tree removal and a challenging economic environment, Sam Houston Electric Cooperative’s board of directors recently elected not to retire capital credits to members in 2025.
“Hurricane Beryl impacted 81,500 meters, or 90 percent of our system,” said Doug Turk, general manager and CEO. “Restoring service within just 6 days was an incredible feat, but it was costly.”
Despite capital credits not being retired, the method of allocating capital credits will not change.
“Capital credits are allocated based on the dollar value of individual electric use. So, the amount of the credit is directly proportionate to the amount of electricity purchased by a Sam Houston EC member,” said Rachel Hawkins, chief communications officer. “Capital credit allocations are invested into system improvements, such as substations, power lines, and other electrical system facilities that serve members.”
Even with the significant costs of storm repairs, the Cooperative remains in sound financial condition, said Sonya Reece, chief financial officer.
“Co-op members typically see the annual capital credit retirement on their September bills,” she said. “Because of last year’s costs, however, members’ September 2025 bills will not reflect retired capital credits.”
Sam Houston EC has distributed capital credits consistently throughout its history. The most recent delay of capital credit retirements was last year due to significant dead tree removal expenses.
“Sam Houston Electric Cooperative has paid out over $52 million in capital credits over the years, including $2.3 million in 2023,” Reece said.