WILLCOX, AZ — A capital credits distribution of $3 million for Sulphur Springs Valley Electric Cooperative (SSVEC) members of record in 2019 will begin Oct. 15, Chief Executive Officer Creden Huber announced Monday.
“This represents the largest distribution of capital credits in our 82-year history,” Huber said. “The board of directors agreed unanimously to take this action during this difficult time. Directors felt it was important to aggressively help our members due to the pandemic.”
Members receiving a capital credit payment of $20 or more will receive checks based on their consumption of electricity during 2019. Those receiving less than $20 will receive a billing credit on their October or November monthly statement and members with an outstanding balance with the Cooperative will have the capital credit applied to that balance.
Capital credits represent revenue earned beyond expenses by the not-for-profit Cooperative. The SSVEC Board of Directors decides whether to distribute these capital credits each year. Previous distributions have been made to members of record from 1994 and earlier.
“Even though SSVEC is not-for-profit, we are required by the Arizona Corporation Commission and our bankers to meet certain financial requirements, which includes recording a profit, or margin, each year,” Huber said.
These margins are returned to members over time, Huber said, with money being invested in the infrastructure and maintenance of the electrical distribution grid.
“The Board of Directors elected by our members determines how much and when the capital credits are returned,” Huber said.
SSVEC has returned more than $20 million in capital credits to its members since it was founded in 1938. More than half that amount has been paid out by the Cooperative since 2003. Margins are divided among members based on the amount of electricity they used during the designated year.
Huber said members who received electric service from SSVEC in 2019 should watch their mail after Oct. 15, the date that checks will begin to be distributed by the Cooperative. Members with an outstanding balance, should examine their monthly statement for the credit.
SSVEC, which distributes electricity to more than 50,000 meters in four counties, is the largest electric cooperative in Arizona. It serves about 39,000 members.
Unclaimed capital credits, or capital credits that are donated by SSVEC members, generates revenue for the SSVEC Foundation. The Foundation is a charitable, tax-exempt organization that promotes youth and education programs, and provides financial assistance to community organizations. Among the programs funded and sponsored by the SSVEC Foundation are the Washington Youth Tour, the Youth Engineering and Science Fair and the SSVEC Scholarship Program.
Submitted by SSVEC