In order to provide electric service, South River EMC, along with our power provider, North Carolina’s Electric Membership Corporation, own some generation assets and meet the remaining energy requirements through contracts with other utilities.

Members then use and pay for this service. Each year, the Cooperative calculates income and compares it to costs. If income exceeds costs, this money (margins) is set aside. It is then reinvested in the business to keep costs down, particularly in relation to borrowing money to keep the system reliable.

After reinvesting in the business, the profit is returned to members in the form of capital credits, because we are non-profit, we do not receive the profit. Capital credits are returned using a hybrid approach, a portion of the most recent as well as the remainder from 19 years prior. For example, last year you received 20-25% of the 2024 margins, as well as the remainder of 2005 margins. This is done to show the Cooperative to new and existing members, while also maintaining the financial strength of the Cooperative.

There is no set amount of how much money each member gets back, it varies from year to year, with the total of margins and the amount you pay each month for electric use.

So in short, we are non-profit because profit is returned to you, our members since you use the service.