Capital Credits and How They Work for You

As a cooperative, Mid-South Synergy is a non-profit business owned by its members. Of course, like any well-run business, each year we realize a margin (or “profit”) above operating costs, which we deliberately keep as low as possible.

Since its inception back in 1940, Mid-South -and most Texas cooperatives-has reinvested this margin to pay for expansions, equipment upgrades, etc. This policy benefits our members by reducing the need to borrow money from high-interest lenders. After twenty years of investment, the money is then returned to members. If you’ve been a member of Mid-South for twenty years or more, each year you get a check for your share of our “margin over cost.” This check is called your “Capital Credit” and it represents your share (based on your contribution) of Mid-South’s margin twenty years ago.

This year, we’ve made two changes in our Capital Credit policy. First: to reduce postage costs, we are no longer mailing Capital Credit checks. Instead you will receive your Capital Credit as a one-time reduction in your bill. The amount you receive will not change, only the form you receive it in.

Our second change is a way of rewarding both old and new members by issuing Capital Credits not only for twenty-year members, but for members who have been with us at least three years. If you’ve been a member of Mid-South for three years or more, you will receive a Capital Credit as your share of our margin three years ago. (And if you’ve been a member of Mid-South for at least twenty years, you will receive two Capital Credits: one for twenty years ago and one for three years ago.)

We hope this explains our Capital Credit program and how it works. If you have further questions, contact your Mid-South Member Services representative.