Capital Credits

Your electric cooperative is different from an investor-owned utility. Southwestern Electric Cooperative is owned by the people to whom it supplies energy--the members. Capital credits represent each member's ownership stake in the organization. At the close of each fiscal year, the cooperative’s margins (revenues in excess of expenses), if any, are allocated back to the membership in the form of capital credits.

General retirements are issued at the discretion of Southwestern Electric’s board of directors. Each year, based on the cooperative’s present financial condition and other considerations, the board of directors determines whether to issue a retirement, and if so, in what amount. The cooperative pays out accumulated capital credits to the estates upon the member’s death, regardless of whether there was a general retirement for that year.

Claiming Credits to an Estate

In order for capital credits to be disbursed to the estate of a deceased member, the final bill of said member must be paid in full and the certain documentation (including, but not limited to, the following items) must be submitted to Southwestern Electric Cooperative. Those items are:

  1. A copy of the death certificate;
  2. A letter of office from the attorney handling the estate or a small estate affidavit completed by the estate's executor or administrator; and
  3. Proof of executorship or administration of the estate.

For more information on claiming capital credits, contact Office Secretary Deb Whicker at (800) 637-8667.

Frequently Asked Questions (FAQs)

Unclaimed Credits