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Capital Credits

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 Board 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.

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