As a not-for-profit utility, South Alabama Electric Cooperative puts our members first in everything. One way we do that is by returning unused funds to members through the capital credits program. This year, SAEC is returning nearly $1.3 million to our members.
At the end of each year, SAEC subtracts expenses from total revenue and sets aside the remaining money to give back to members in the form of capital credits. Members receive a portion of those credits based on their purchases from the cooperative in the past year. These credits serve as a reflection of each member’s ownership of the cooperative.
However, not all credits returned to members are from the previous year. Because SAEC still needs funds to continue operating, expanding and making improvements to our electric system, we use a hybrid method to return capital credits. The 2020 retirement will include funds from 1989, 1990, 1991 and a portion of 2019.
Counting this year’s repayments, SAEC has retired more than $15 million in capital credits to our members. This program is just another way we put our members first in everything we do.