Capital credits issued
As a cooperative, SLVREC does not operate for a profit. Rates are determined by periodic cost-of-service studies designed to evaluate the cost of doing business for each rate class served. Money collected in excess of actual expenses is retained by the cooperative as a type of operating loan. This loan from members to the cooperative provides a ready cash flow and keeps the cooperative financially stable.
Each year, the cooperative’s board of directors reviews the company’s financial status and determines if there is enough working capital on hand to return a portion of this “borrowed” money back to members. These capital credits are paid out to members in direct proportion to a member’s use for the years in which the credits are being returned.
Members who no longer have active accounts with the cooperative, but who are entitled to receive capital credits for these years will receive a check in the mail.
SLVREC currently returns most capital credits in the form of a bill credit for members with active accounts. Bill credits were issued on the January 2021 statements.
