Like any business, SVEC must collect enough revenue to cover the cost of providing electric service, maintain and improve the electric system, and meet its financial obligations.
SVEC's lenders also require the cooperative to maintain certain financial ratios and levels of financial performance. These requirements help ensure SVEC remains financially sound and able to meet its obligations, maintain access to financing and continue investing in reliable service for our members.
As a not-for-profit cooperative, margins are not the same as profit for outside owners or shareholders. They help strengthen SVEC's financial position, support investment in the electric system and are reallocated to members through capital credits. Capital credits may be retired and returned to members over time, based on the cooperative's financial condition and Board-approved decisions.