Salem Electric is a not-for-profit electric cooperative. At the end of each fiscal year, if revenues exceed expenses, margins (operating revenue less operating expense) are allocated to members as capital credits based on the amount the member paid to Salem Electric for electric service during the year. An allocation notice detailing the amount of capital credits earned is mailed to members each spring, typically during the month of May.
Capital credits represent your investment in the cooperative and are used as operating capital. The funds are used for new construction, infrastructure maintenance, debt reduction, and other capital purposes approved by the Salem Electric Board of Directors.