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Snapping Shoals EMC members to receive $2.8 million
Being a member of Snapping Shoals EMC definitely has its benefits. Not only is the Covington-based cooperative one of the lowest cost power providers in the state, Snapping Shoals EMC also periodically returns capital credits to its members. In fact, SSEMC has returned capital credits to members almost every year in the past 23 years, and has cumulatively returned $34 million dollars overall.
Capital credit checks are being mailed again on Friday, July 6, returning approximately $2.8 million in capital credits to SSEMC members. The amount of each refund is based on the member’s electric energy use for the year 1994. If you were a member during 1994, and the amount being returned to you is less than $25, that amount will be credited to your July bill. If the amount of capital being returned to you is more than $25, then a check will be mailed to you.
As a non-profit organization, SSEMC’s capital credits, or margins, are the revenues that are over and above the cost of providing service for the electric co-op’s customer-owners. These are required by lending institutions to establish financial strength for loans. SSEMC routinely refunds these capital credits to its members when its board of directors determines it is appropriate to do so. Key legislation passed in 2005 allows EMCs to retain certain unclaimed capital credits that historically would be turned over to the state. According to the legislation, unclaimed capital credits must be used to support programs such as the Snapping Shoals EMC scholarship program, the Bright Ideas grant program and other economic and community development projects.
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