Capital Credits

South Central Electric Association is a Cooperative. The difference between a cooperative and another kind of business is that we return our margins back to the membership.

We attempt to set electrical rates so that the money you pay will cover operating expenses and give us a small margin in order to satisfy our banker(s), Cooperative Finance Corporation, Rural Utility Service and CoBank.

Whenever we have any margins remaining at the end of a year, we credit them back to the membership as Capital Credits. Your share of the Capital Credits depends on the amount you have paid to the Cooperative for electricity that year.

South Central Electric retains your Capital Credits and uses that money as operating capital. By retaining Capital Credits we reduce our need for borrowed operating money. As money is available, and as the Board decides, we pay Capital Credits to all people who were members in a certain year. 

Capital Credit Distribution Upon Death

 

Upon the death of any patron, capital credits shall be paid in full to their estate following the collection of the necessary paperwork detailed below. Distributions are subject to approval at the monthly board meeting, held on the fourth Tuesday of each month.

 

Account Transfer Requirement:
All active electric utility accounts must be transferred within four (4) months of the account holder’s death. Capital credits cannot be distributed until the account is deactivated under the deceased's name.

To begin the account transfer process, please contact our office directly at 507-375-3164.

 

If the estate of the deceased is currently being probated, the court-appointed personal representative must provide the following documentation:

  1. A copy of the Letters Testamentary or Letters of Administration issued by the probate court.
  2. A completed IRS Form W-9 certifying as to the tax identification number or social security number of the person or entity receiving payment of the funds (required only for distribution amounts exceeding $600).

 

If the estate is not being probated, the following steps must be completed:

  1. Complete and sign the Affidavit for Collection form, with the signature notarized.
  2. Attach a copy of the Death Certificate.
  3. Complete the IRS Form W-9, certifying the tax identification number or Social Security number of the individual or entity receiving payment of the funds (required only for distribution amounts exceeding $600).

 

Submit Documents To:
South Central Electric
PO Box 150
St. James, MN 56081
or
Email to sce@southcentralelectric.com

Form W-9 click here.

Affidavit for Collection click here.

 

Donate to Operation Round Up

If you'd prefer, funds can be donated to South Central Electric’s Operation Round Up fund. This program supports charitable organizations within the South Central service area that apply for assistance. Please note:

  • Funds will not be used for political purposes or as supplemental funding for local government.
  • Some members choose this option when the distribution amount is small or if they’re unable to provide the required paperwork.

 

To donate your funds to Operation Round Up, please contact our office directly.

 

Important Notice: If you move or leave South Central Electric's lines, call or write South Central Electric and let us know your forwarding address. As Capital Credits are paid in the future, they will be sent to your last known address.