At San Patricio Electric Cooperative, we believe in the power of community. We’re owned by those we serve - our friends, family and neighbors. That means we don’t answer to faraway shareholders, we answer to you.
Our business model puts people ahead of profits and ensures the community is at the heart of every decision we make. This year, that commitment once again takes shape in a very real way. We are proud to announce that SPEC will return $2.6 million to our members in 2025.
Of the money we’re giving back to our members, $800,000 will be returned as billing credits on bills received in early December. You’ll see a credit line item on your bill, simply labeled “Merry Christmas”.
The amount of your credit depends on how much electricity you used throughout the year. The more power you used, the higher your bill credit. Likewise, if you used less electricity, your credit will be smaller.
In addition to the billing credits members will receive, SPEC will retire $1.8 million in capital credits from a portion of the years 2009, 2010 and 2024. Members who were part of the co-op in these years will receive a check in early December. Like the billing credits, the amount of your check is related to how much electricity you used in those years.
Capital credits is a term SPEC uses to refer to our margins (revenues minus expenses). But unlike traditional businesses, we don’t keep those margins. We give them back to you—eventually.
Every time you pay your bill you help maintain the poles and wires that serve our communities, support reliability and strengthen your cooperative’s long-term health.
When money is left over after covering these costs, it doesn’t go into the hands of faraway investors. It stays right here, in our community, with the people who helped build and sustain this cooperative for generations.
Each year, SPEC’s Board of Directors evaluates the cooperative’s financial standing and determines what, if any, margins can be returned to our members. And we have a good track record of returning funds.
Since 2008, SPEC has retired more than $24 million in capital credits. It may seem like a lengthy payback period – the year 2009 was quite some time ago—but we keep these funds for a period of time for the benefit of all members. For example, these funds can be used to rebuild the co-op’s electricity system in the event of a natural disaster.
Primarily, holding on to these capital credits allows the co-op to borrow loan funds at better interest rates, which in turn helps keep electricity rates affordable.
While many electric co-ops retire capital credits on a 30-year cycle, SPEC gives them back much sooner—on a 15-year schedule with a portion of capital credits coming from the most recent year. We want our members to enjoy the benefits of their co-op membership faster. This money belongs in our community, not sitting on a balance sheet. Returning capital credits sooner helps families today, keeps more money local, and shows that our co-op always puts people first.
Giving back is who we are at our core. Our measure of success is not profit margins or shareholder dividends. It is how well we serve our members and strengthen the communities we call home.
The $2.6 million we are returning this year is more than money — it’s proof of the cooperative difference in action. It shows that when we put people ahead of profit, everyone benefits. It shows that together, as a cooperative, we can do more than keep the lights on — we can build a stronger, brighter future for the communities we serve.