Otis Singleton
Horry Electric Cooperative, Inc. is a not-for-profit electric utility cooperative that serves its members instead of shareholders. Unlike investor-owned utilities, Horry Electric determines if there is excess revenue above what is needed to run the business at the end of each year. If there is excess revenue, also known as margins, the cooperative returns it to its members as capital credits based on their electricity consumption that year. The board of trustees retires the capital credits and refunds the money to members, either by check or account credit on their April bill.
| Characteristics | Values |
|---|---|
| Business Model | Not-for-profit cooperative |
| Objective | Serve member-owners, not shareholders |
| Excess Revenue | Returned to members as capital credits |
| Capital Credits | Based on electricity usage |
| Retirement | Money given back to members |
| Disbursement | By the end of April |
| Amount | $3,042,770.07 in 2020 |
| Payment | Check or account credit |
| Address | P.O. Box 119, Conway, S.C. 29528-0119 |
Explore related products
What You'll Learn
Capital credits
As a not-for-profit electric cooperative, Horry Electric's business model is unique. Unlike investor-owned utilities, it operates on just enough to run the business. Instead of earning profits for shareholders, it serves its member-owners.
At the end of each year, Horry Electric determines if there is excess revenue above what’s needed to run the business. As a non-profit, the cooperative works to return any excess revenue, also called margins, to its member-owners. These margins are allocated to members as capital credits based on their electricity use that year.
Former members may be eligible to receive capital credit refunds for years after moving out of the cooperative's service territory, depending on the number of years spent as a member and the percentage of electricity used for those years. To avoid missing out on this refund, former members should keep the cooperative aware of any change of address. Capital credits may also be paid out to a legally dissolved business entity if the proper legal documents are provided.
Kickstarting Your Makita Electric Chainsaw: A Beginner's Guide
You may want to see also
Explore related products
Retirement disbursements
As a not-for-profit cooperative, Horry Electric operates on just enough revenue to run the business. At the end of each year, Horry Electric determines if there is excess revenue above what is needed to run the cooperative. As a non-profit, the cooperative works to return any excess revenue, or margins, to its member-owners. These margins are allocated to members as capital credits based on their electricity use that year.
When the financial standing of the cooperative allows, the board of trustees retires the capital credits and disburses the money back to members. The disbursements are issued to member-owners in the form of a check or account credit on their April bill.
In 2020, members of Horry Electric Cooperative received a portion of the capital credits assignment for 2003, 2004, and/or 2019. The allowable retirement that year was $3,542,770.07 less $500,000 in estate payments, for a total disbursement of $3,042,770.07. Members who were part of the cooperative in 2019 received 1.34% of their 2019 assignment. Members from 2003 or 2004 received the remaining unretired balance of their assignment for that year.
To help members understand their disbursement, a chart is provided to calculate the approximate amount of their allocation and disbursement. Members with refunds of less than $25 will see a credit on their electric bill, while refunds of $25 or more will be issued in the form of a check.
Electricity Bills: Monthly Payment Options and Money-Saving Tips
You may want to see also
Explore related products
Non-profit business model
Horry Electric Cooperative, Inc. is a non-profit, member-owned organisation that provides information and energy-related services on a fair and equitable basis. It was established on April 25, 1940, with 627 charter members, and its system was energised on January 7, 1941.
The Cooperative is governed by a nine-member board of trustees, who are elected by their fellow members at the Cooperative's Annual Meeting. The board is responsible for naming the Executive Vice President and Chief Executive Officer, who in turn appoints the leadership team that operates and maintains the system. As a non-profit, Horry Electric Cooperative's business model is based on providing value to its members rather than maximising profits. This is reflected in their practice of returning capital credits to members. For example, in 2020, members received a portion of the capital credits assignment for 2003, 2004, and/or 2019, totalling more than $3 million in disbursements.
The Cooperative serves more than 90,000 active meters through 26 substations and over 5,700 miles of distribution lines in Horry County. Its purpose is to "power your life so you can do all the things you need to grow". This aligns with the broader role that co-ops play in the United States, which is to promote economic empowerment, foster community engagement, and support the unique needs of their members.
Horry Electric Cooperative's non-profit business model is guided by seven principles that underpin its operations. These principles ensure that the Cooperative remains focused on serving its members and providing equitable access to information and energy services. This model has allowed the Cooperative to operate successfully for over 80 years, providing stable leadership and a commitment to its community.
Dispose of Electric Toothbrushes: Tips for Environmentally-Friendly Retirement
You may want to see also
Explore related products
Member-owner margins
As a not-for-profit cooperative, Horry Electric's business model is unique in that it operates with just enough funds to run the business. Unlike investor-owned utilities, any excess revenue or margins go back to the member-owners and not to shareholders. At the end of each year, Horry Electric determines if there is excess revenue above what is needed to run the business. These excess revenues, or margins, are returned to the member-owners and allocated as capital credits based on their electricity consumption for that year.
When the cooperative's financial standing allows, the board of trustees retires the capital credits and refunds the money to members. These refunds are issued in the form of a check or account credit on the April bill. In 2020, the allowable retirement was $3,542,770.07, less $500,000 in estate payments, with the total amount being distributed at $3,042,770.07. Members who were part of the cooperative in 2019 received 1.34% of their 2019 assignment. Members from 2003 and 2004 received the remaining unretired balance of their assignments for those years.
Due to the cost of processing and issuing checks, members with refunds of less than $25 saw a credit on their electric bill instead. All refunds below $25 were credited to the accounts of eligible active members when the account bills were issued in April. Members can calculate the approximate amount of their allocation and disbursement by using a chart provided by Horry Electric Cooperative. This chart helps members estimate their capital credit check or electric bill credit.
The Hyundai Kona Electric: Speed and Performance
You may want to see also
Payment methods
Horry Electric Cooperative offers several ways to pay your electric bill. You can choose to mail a check or money order with your bill stub to their office address:
Horry Electric Cooperative, Inc.
P.O. Box 119, Conway,
S.C. 29528-0119
Alternatively, you can pay with cash or check in person at their office locations during regular business hours.
It is important to note that payments must be received and processed before the due date to avoid late fees and potential service disconnection. A penalty fee of 5% will be charged for late payments, and a $40 reconnect fee will be added for accounts disconnected due to non-payment.
Horry Electric Cooperative, as a non-profit, also operates a unique business model where they return any excess revenue to their member-owners at the end of each year. These excess revenues are called capital credits and are allocated to members based on their electricity usage. The cooperative determines if there is any excess revenue above what is needed to run the business, and when financially possible, they retire these capital credits and issue refunds to members in the form of checks or account credits in April.
You can also search for unclaimed capital credit funds in their regularly updated database if you are a past or present member. If you find your name on the list, you can complete a request form, and a representative will contact you within five business days.
Transforming Trucks: Electric Conversions for a Greener Future
You may want to see also
Frequently asked questions
Horry Electric Cooperative, Inc. is a not-for-profit electric utility cooperative. Unlike investor-owned utilities, Horry Electric is run on just enough to operate the business and returns excess revenue to its member-owners.
At the end of each year, Horry Electric Cooperative determines if there is excess revenue above what is needed to run the business. When their financial standing allows, the board of trustees retires capital credits and gives money back to members in the form of a check or account credit on their April bill.
In 2020, Horry Electric Cooperative returned a total of $3,042,770.07 to its members, including balances from 2003, 2004, and 2019.
You can pay your electric bill to Horry Electric Cooperative by mailing a check or money order with your bill stub to their address in Conway, South Carolina, or by paying with cash or check at their office locations during regular business hours.
