Understanding Membership Equity
What is Membership Equity?
When you seek electric service from SSVEC, you are more than just a customer—you are a member-owner of the cooperative. Membership Equity (formerly called Capital Credits) is your share of the cooperative’s profits.
At the end of each year, if SSVEC’s revenues are more than it spends, your portion of that profit is added to your Membership Equity account. This amount stays on SSVEC’s books until the equity is retired. It will be paid back to you through either checks or credits on your electric bill as decided by the SSVEC Board of Directors.
Allocated vs. Retired Membership Equity
Allocated Membership Equity: This is the total amount credited to your account over the years you received electric service. This is like a savings record that tracks how much of the cooperative you own.
Retired Membership Equity: SSVEC’s Board of Directors reviews the cooperative’s equity position annually, and based on various financial criteria, may approve the return of some allocated equity to members. This process is called the "retirement" of Member Equity. It will be paid either as a check or a bill credit on the electric invoice. Retirements typically occur approximately 25 years after the equity is earned.
Note: If you owe money to SSVEC, any retired equity will first go toward paying your outstanding balance.
Why Can’t I Get My Membership Equity Now?
Membership Equity is like long-term savings—it helps SSVEC remain financially healthy so it can continue to serve all members. It is not available as immediate cash. The cooperative uses it to fund operations and improvements. Retirements are made gradually, usually over about 25 years.
If you prefer, you can donate your equity to the SSVEC Foundation, which uses these monies to fund scholarships and other educational programs. However, these donations still follow the standard retirement schedule.
What Happens If I Move Away?
Your Membership Equity remains in your name even if you leave SSVEC's service area. When these funds are retired (approximately 25 years later), a check will be mailed to the last known address on file. Therefore, it is important to inform SSVEC of any mailing address changes.
What If I Pass Away?
Your Membership Equity can still be claimed by your estate. The person handling your estate must submit the proper paperwork using our Estate Retirement Form.
Why is Estate Retirement Discounted?
Normally, Membership Equity is returned over a 25-year cycle. If your estate wants the full amount early, it is paid at a discounted rate. This is because the money received today is more valuable than money received over time. Alternatively, the estate can choose to receive the full (undiscounted) amount over the standard 25-year retirement schedule.
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