As a cooperative, San Miguel Power Association (SMPA) is owned by its members, and member dividends, also known as "capital credits", reflect each member’s ownership in the cooperative. Member dividends come from the annual margins or revenues related to the sale of electric service that remain after all expenses have been paid. These margins are an interest-free loan of operating capital by the membership to the co-op. This capital allows the cooperative to finance operations and construction, with the intent that such capital will be repaid to co-op members as a member dividend check later on. These dividends are allocated to the cooperative’s members in proportion to their electrical use.
Member Dividends help keep rates at an affordable level by reducing the amount of funds that must be borrowed to maintain and enhance SMPA’s existing electric system. SMPA allocates member dividends to all members each year that a positive margin is earned. This means that an entry is made on the permanent financial records of the co-op that reflects each member’s equity or ownership in SMPA.
Frequently asked questions:
What happens to my family member’s member dividends if they have passed away?
Member dividends can be paid back to the legal representative(s) of your family member’s estate. In order to claim them, an affidavit is required to be completed, notarized, and returned in addition to a copy of the death certificate and personal representative appointment documentation, if one was appointed. Please click here to download affidavit.
Member Dividends that are claimed early due to the death of a family member are returned at a discounted rate.
What happens if a member dividends check is issued in the name of a dissolved entity?
Check to see if your bank will cash the check first. If the member dividend check is less than $100 an Affidavit Regarding Dissolution of Entity may be used to have SMPA reissue the check in a different name. Please click here to download affidavit. For checks greater than $100, please contact us.
Other member dividend questions?