SMECO Issues Capital Credit Refunds
Capital Credit Refunds from Southern Maryland Electric Cooperative will begin to be issued in July, at a total of nearly $5.6 million. Eligible active customer-members will get credits on their bills and checks will be sent to eligible former members. Special refunds of around $1.9 million will be issued throughout the year to estates of deceased members and unpaid final bills.
“When SMECO issues a refund to members, we’re making good on a cooperative promise,” said Austin J. Slater Jr., SMECO president and CEO. “Whether you have a residential account or a large commercial account, you realize one of the benefits of being an electric cooperative member when you receive a portion of SMECO’s margins. Passing savings on to members demonstrates electric cooperative values and shows how we’re different from other utilities.”
SMECO’s financial margins in 2017 added up to more than $23 million. The co-op uses margins — revenue minus expenses — as working capital for system improvements and construction. “SMECO’s members invest in their cooperative every time they pay their bill. They help to finance the cooperative’s operations, but they also share its rewards,” Mr. Slater said.
At the end of each year, the margins are allocated to members’ capital credit accounts. Capital Credit Refunds are given to members when the SMECO Board of Directors can see that the cooperative’s financial conditions will be met.
Every customer-member’s share of the cooperative’s margins is based on how much electricity the member purchased and the rate at which the account was billed. Every eligible active member will receive a credit on the bill for their primary account. Members who wish to contact SMECO to designate their primary account can call 1-888-440-3311. Inactive eligible members will get a full refund of the balance in their capital credit account if the balance is $50 or less. Capital credits may also be used to pay an amount due if a customer-member has an unpaid final bill for electric service.
To learn more about SMECO, please visit their Leader member page.
