Sam Houston Electric Cooperative is distributing $4.6 million in capital credits to consumer-members on September electric bills.
“Capital credits are an important advantage to being a member of Sam Houston Electric Cooperative,” said Rachel 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 they purchased that year. Capital credits are then used to build and upgrade the Co-op’s 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,” Hawkins said.
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 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 $65 million in capital credits.
