Capital Credits (margins) are to a cooperative what profits are to a
private business. Because we are a member-owned entity, SWRE strives to
operate all segments of operation at cost. As a result, any margins
(profits) are returned to you the customer. Your share of these margins
is called Capital Credits.
How are Capital Credits Allocated?
At the end of the year, net margins are allocated to each customer in
proportion to the customer's cooperative purchases during the year. The
of Trustees usually decides when to retire Capital Credits based on
the cooperative's financial condition at the end of the year. In the
meantime, SWRE utilizes the money as working capital for operating and
reinvesting in the cooperative until a determination is made.