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Capital Credits

At our Cooperative, members are a part of something special. Our members collectively own Sioux Valley Energy and enjoy several benefits unique to cooperatives. Capital credits are fundamental to the cooperative business model and a financial benefit our members enjoy.

Because SVE is a not-for-profit cooperative, owned by its members, it doesn’t technically earn profits. If revenues exceed expenses, the co-op earns “margins.” Each year, margins are assigned to you in proportion to the amount you are billed for electricity during that year. These “capital credits” reflect your ownership in SVE but are not automatically returned to you. The Cooperative uses capital credits to fund operating activities and reduce borrowing, with the intent of repaying this capital to you in later years.

After reviewing the Cooperative’s finances each year, the Board of Directors determines whether a portion of capital credits can be retired, or returned, to members. The Board also evaluates the method, basis, priority and timing of all capital credits retirements. Because capital credits are based on the dollar amount of electricity a member purchases, the retirement amount will vary from member to member and from year to year.

2016 Retirement:

The Sioux Valley Energy Board of Directors has approved a $1.52-million general capital credit retirement.  The cooperative will be retiring a portion of the 1991, 1992 and 2015 allocation. Individuals and organizations who were members of SVE in those years will be receiving a portion of their capital credits. The amount of each allocation and retirement is based on how much individual members paid the co-op for electric service during that period.   

Capital Credit FAQs

The Cooperative's Bylaws serve as a guide for capital credits allocations and retirements. If you have questions about the capital credits allocated to your account, you can call us toll free at 1-800-234-1960 and someone will be happy to answer your questions.

Estate Retirements: If you are a family member of a current or former member who has passed away, you and remaining heirs may be eligible to receive a discounted payment as an Estate Retirement (“natural person” only; not business).

The Application for Decedent Parton’s Capital Credits needs to be completed, notarized and returned to our office with the supporting documents.  One of the following is necessary:

  • If you are the court appointed administrator – application form completed signed and notarized, and a copy of personal representative document (note: a trust is not a legal representative of an estate - and neither is a copy of a will)
  • If you are the spouse – application form completed signed and notarized, and a copy of the death certificate
  • If you are the deceased member’s child/children – application form completed by proposed payee, signed and notarized, all heirs need to sign on the bottom back of the application (do not need notary on these), and a copy of the death certificate        
  • If none of the above apply – application form completed and notarized by proposed payee, a copy of the death certificate and a “small estate affidavit” must be filled out and notarized (this certifies that you are entitled to make the claim for payment). A copy of the small estate affidavit is available upon request.

Note: Attach a copy of the POA (Power of Attorney) papers only if you are signing on behalf of the person requesting the payout.   POA papers are not a document to be used in lieu of Personal Representative Papers or a death certificate.

When we have the completed application and supporting documents it will be presented at the next scheduled Board of Directors’ meeting for approval and subsequent payment.  If you have any questions please feel free to call Kathy at 800-234-1960  ext 1654.

Unclaimed Capital Credits

Each year when Sioux Valley Energy mails capital credit checks to former members, some are returned because the person has moved. If the former member's name was printed in the newsletter indicating they had capital credits at the cooperative, please have them call 1-800-234-1960. 

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