Capital Credits

Capital credits come from the money left over (margins) after all expenses are paid in a given year. If margins are available, that money is credited to your account according to the amount of electricity you purchased. Assigning capital credits to members, instead of paying dividends to distant stockholders, is just part of the accountability the Cooperative offers you.

When the Cooperative’s finances permit, that money is returned to members in the form of capital credits checks.

Unlike many other businesses, cooperatives do not have shareholders who expect to make money from operation of the company. Instead, cooperative consumers are member-owners of the company. It’s a not-for-profit business that exists solely to provide its members with electricity. That’s the cooperative difference!

In a cooperative, net margins don’t belong to the business; they belong to the individual members who paid money on their monthly bills. When the Cooperative takes in more money than is needed to run the business, members are entitled to a share.

Being paid for patronizing your own company is just another benefit of buying your power from an electric cooperative.

A capital credit refund of $3.5 million was refunded to every member using South Plains Electric Cooperative's service in 1987, 2003, 2005 and 2022.

If you were entitled to more than $10, you will received a check from us in December. If the amount was less than $10, you will receive a credit on your bill.

Your Cooperative has returned capital credits (margins) to members since 1964 - it's nothing new. A grand total of more than $53.5 million in cash has been returned to members in our local communities - not to distant stockholders.

For complete details on our 2023 capital credit return, click here.