Most utility companies pocket their profits, but that’s not the case when you’re a part of a cooperative. We aren’t focused on profits; we’re focused on people.

Electric cooperatives were formed in the 1930s by rural farmers and ranchers who pooled their resources to put up power lines and get electricity to their homes and businesses.  SPEC still works the same way today—our collective resources help keep the lights on.

The co-op is made up of all the members we serve, which means you’re a part-owner. Each month, when you pay your bill, you gain more equity in the cooperative. Any extra revenue the co-op makes rightfully belongs to SPEC’s members and as a not-for-profit business, the cooperative is responsible for returning these funds back to its members, when possible.

As an owner of the cooperative, you’re entitled to a portion of SPEC’s margins (profits minus expenses), in relation to the amount of electricity you use. Each year, SPEC’s Board of Directors evaluates the cooperative’s financial standing and gives whatever margins it can back to our member-owners. At SPEC, these margins are called capital credits.

In November, SPEC retired $1.28 million in capital credits from 1997, 1998, 1999 and a portion of 2015. Members who were a part of the cooperative in these years received a capital credit check relative to the amount of electricity they consumed. Since 2009, the cooperative has retired more than $13 million in capital credits for its members.

Members also received a pleasant end-of-year surprise on their electric bills mailed in early December. SPEC returned $2 million in bill credits to its members, which are also distributed in proportion to the energy each member used.

Now, it may seem like a lengthy payback period—the 90s were quite some time ago—but SPEC actually has a very healthy rotation plan to return capital credits to its members. Some cooperatives operate on a rotation plan of 25 to 30 years.

These funds are kept for a period of time for the well-being of all members. Holding on to these capital credits allows SPEC to borrow loan funds at better interest rates. These low interest rates are important for every member because they help make electric rates more affordable as well as keep costs down for new construction, storm repair, system upgrades and other services.

Use your capital credits to make a difference

Our scholarship program is funded by donated capital credits. If you’d like to use your check to spread some good to local student’s, we’d be happy to arrange that for you. In 2016, these donated funds helped pay for the education of 20 area students. Each of these deserving students received a $5,000 scholarship to use at the school of their choosing.

If you’re interested in donating your capital credits, contact us or 361-364-2220.