Sam Houston Electric Cooperative is distributing $2.3 million in capital credits on September electric bills
“Capital credits are an important advantage to being a member of Sam Houston Electric Cooperative,” said Rachel Frey Hawkins, chief communications officer. “Since we are a not-for-profit electric cooperative, when annual revenues are greater than operating costs, the surplus is assigned back to our consumer-members as capital credits.”
The amount of each member’s capital credits is based on how much electricity he or she purchased that year. Capital credits are then used to build and upgrade the power distribution system.
“If you take a look around the system, you will see capital credits at work in the poles, power lines and transformers that provide safe, reliable and cost-effective electricity to our members,” said Hawkins.
When the Cooperative’s financial condition allows, a portion of each member’s capital credits are paid as a credit on September electric bills.
“Unlike investor-owned utilities that pay out dividends to shareholders, Sam Houston EC returns unused capital to our members who use the electricity,” Hawkins said. “We work hard to operate as efficiently as possible in order to save our members money. That’s what being a not-for-profit cooperative is all about.”
Over the years, Sam Houston EC has distributed more than $50 million in capital credits.
“Sam Houston EC’s consumer-members have benefited from lower wholesale power costs in recent months,” Hawkins said. “When wholesale power costs fall, the Co-op passes the lower prices along to members. With higher electricity consumption for air conditioning during this summers’ heat wave, this is a great time for capital credits and lower power costs.”
