Because Sun River Electric is a cooperative, the money that is earned over expenses each year is allocated to the members in the form of patronage. The amount of money over and above the cost of providing service is called margins. The margins are divided among the members according to the amount each member paid for electricity that year.
An allocation is done once a year following our annual audit. The allocation figures will be mailed to you in April or May of each year. The notice will show the current capital credit balance and the total of all the years combined. This will be a report of your equity or ownership in SREC.
Capital credits are paid back upon approval from the Board of Directors based on our current equity level, yearly margins, and cash flow. Capital credits may also be retired early upon request to estates or to patrons leaving the system and no longer taking service, however, capital credits retired early are discounted at a rate of 4% per year on a simple basis. When credits are paid out, any refund that is under $10.00 will be automatically credited to the main billing account. Any amount over the $10.00 will be issued in the form of a check. A check will also be issued to members who do not have an active billing account.
How do I go about applying for capital credits early?
Contact Sun River Electric if you wish to apply for your capital credits early due to an estate or if you have moved off the system and do not plan on returning. We will send you a letter of explanation, an application form, and a discount schedule. Estate capital credits may be retired at a discounted rate or transferred to the executor of the estate or to the SREC scholarship fund. If the capital credits are transferred they will be paid out through normal yearly retirements. Contact Leanne at 467-2527 or 1-800-452-7516.
If you move off the Sun River Electric system please keep us informed of your new address.
We have capital credits on our books dating back to the year 1992, and it is important to keep addresses as current as possible to ensure that capital credit refund checks are properly received.