The changing needs of an evolving membership prompted Southwestern Electric Cooperative’s board of directors to update the co-op’s decades-old approach to returning member capital. Beginning Jan. 1, 2024, you may apply for an adjusted early payout of capital credits if you’re terminating your membership or if you’re the executor of an estate with capital credits. 

In the past, Southwestern didn’t offer the option of adjusted early payouts. Southwestern Electric’s board of directors revisited the cooperative’s capital credit policy to meet your needs — the needs of a changing membership. You’re far more mobile than you were when our policy was originally drafted in 1939. We have members who relocate five times in 10 years, eventually moving off co-op lines. Each change of address is an opportunity to fall out of touch. That can make it difficult to return capital credits to people who’ve earned them. Recognizing that, Southwestern’s board of directors decided to offer an adjusted early payout option to the co-op’s capital credit retirement policy.

Early payouts recognize that you withdrew your capital credits before South-western could realize their full value. The co-op was not able to use those funds as capital for the full 30 years as planned. If you withdraw your capital credits before they fully mature — even if you are settling an estate — they will be adjusted to the net present value.

For more information, see our brochure (prints as 8.5x14) or capital credits page.