05 May Board Elects to Retire Capital Credits Early in 2020 for COVID-19 Relief
In an effort to help our Members through the COVID-19 situation, the Board of Directors has voted to return capital credits to our Members early this year. We are pleased to announce that $1.2 million will be returned to Members. All active Members as of the end of 2019 will get bill credits. The credits will appear on the bills issued in May.
Historically, capital credits were returned in December right before Christmas. Since 2016, we have returned them in August or September. In light of the effect COVID-19 has had on our national economy and the financial hardship felt by many Mississippians, the Board of Directors voted to move forward with an early return this year.
All active Members who had accounts with Southwest Electric – in other words, your meter was receiving electricity – prior to December 31, 2019, will get a bill credit. All Members with inactive accounts will be mailed a check.
Southwest Electric is a Member-owned cooperative, not an investor-owned utility. We do not operate to make a profit. Revenue received from Members’ bills is used to cover operating expenses and the remaining funds are invested in the utility plant. This investment called capital credit patronage is allocated to our Members’ accounts based on how much electricity they used that year. Members who use more electricity will have a larger investment. Likewise, Members who use less will have a smaller investment.
Since 1960, Southwest Electric has returned over $29 million in patronage capital to our Members.