The Sam Houston Electric Cooperative Board of Directors recently voted to approve the payment of $3 million to Cooperative member-owners. Retired as capital credits, these funds will be issued as a credit on members’ September electric bills. The average capital credit will be more than $50.
Capital credits are allocated from revenues collected in excess of operating expenses during the previous year. Once the determination has been made that the financial condition of the Cooperative is stable and adequate to meet operating costs, debt covenants and emergency expenses, the Board may elect to return excess capital by retiring capital credits to the Co-op members. Capital credits are proportionate to individual electric use.
“Unlike investor-owned utilities that pay out dividends to shareholders, electric cooperatives can return unused capital, or monies collected in excess of operating costs, to our member-owners in the form of capital credits,” says Kyle J. Kuntz, Sam Houston Electric Cooperative CEO. “We are pleased that the Cooperative’s financial condition allows us to credit $3 million to our members’ bills during the hot weather month of September.”
Since 1971, Sam Houston EC members have received more than $37 million in capital credit refunds.
Members with questions regarding capital credits are encouraged to contact a Sam Houston EC member service representative at 1-800-458-0381.
