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What Are Capital Credits?

Capital Credits or margins

One of the benefits of being a member-owner of an electric cooperative is sharing in the financial prosperity and receiving capital credits. Capital credits represent each member's share of the cooperative's margins (profits), earned in proportion to the member's energy purchases during the year. Basically, because the co-op is not-for-profit, it returns anything extra--after expenses--back to its member-owners. However, it may take some time for you to see those profits.

San Patricio Electric Cooperative, Inc. holds onto these funds for a number of years in order to secure loans with better terms. When the co-op recieves the best funding available, it can provide lower rates, as well as keep costs down for new construction, storm repair, system upgrades and other services.

Capital credits are returned to members according to a rotation plan. Each year, the Board of Directors looks over the financial well-being of the cooperative and determines what to return to members.

To ensure receipt of future statements and correspondence, please advise San Patricio Electric if your address changes. For more information regarding your capital credits, contact us at 361-364-2220 or 888-740-2220.


Capital credits help send kids to college

Many of our members donate their capital credits to the Education Trust Fund, which funds SPEC’s scholarship program. In 2015, these donations helped fund the education of 25 area students. Each of these deserving students received a $5,000 scholarship to use at the school of their choosing.


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