Southwest Mississippi Electric customers get holiday checks
Published 11:44 pm Tuesday, December 20, 2011
NATCHEZ — Some local utility customers recently received what seems like the opposite of a bill in their monthly communication from the Southwest Mississippi Electric Power Association — a check.
That’s because the SWMEPA is a non-profit electric cooperative.
Power rates for the co-op are set so that SWMEPA takes in enough money to continue their operations, repay loans and set aside some reserve funds.
And because it’s a co-op, any revenue above those requirements is reimbursed to co-op members — the utility customers. These reimbursements are known as capital credits.
The reimbursement of the credits is a normal function of the co-op, but it’s not set to an automatic timeline.
“It is a board decision,” SWMEPA Spokeswoman Azalea Knight said. “They evaluate it every year, but it is their decision (to decide) that there are excess (revenue) margins.”
The amount of the credits a given member receives is based on the amount of electricity they used in a given year.
“The more power they used, the bigger the check,” Knight said.
Included with the check was a note that said co-op members were welcome to send it back with their monthly bill and that it would be included as part of their payment.