August 22, 2019

SMECO Refunds Capital Credits

Capital Credits

Customer members of Southern Maryland Electric Cooperative will be seeing refunds of their capital credits.

SMECO is refunding members’ capital credits totaling close to $5.4 million. From that total, a general refund of about $3.4 million will be issued in July. Eligible active members will get credits on their bills, and checks will be issued to eligible former members of the cooperative. Special refunds of close to $2 million will be paid throughout the year to estates of deceased members and to help take care of unpaid final bills.

“SMECO members invest in their cooperative every time they pay their bill. When SMECO meets its financial obligations and we can issue refunds to members, we are happy to do so,” said Austin J Slater Jr., president and CEO of SMECO. “All SMECO members share the responsibility of financing the co-op, and receiving a refund of a portion of SMECO’s margins is one of their rewards.”

SMECO’s margins in the year 2018 totaled more than $27 million. SMECO uses margins — which consist of revenue minus expenses — as working capital for system improvements and construction.

Mr. Slater said, “Our members help to finance SMECO’s operations, and they realize one of the benefits of being a member when they receive a refund. Passing savings on to members is a basic co-op principle.”

In the last months of every year, SMECO’s margins are allocated to a special capital credit account for all members, based on how much electricity each member purchased and the rate at which the account was billed. The SMECO Board of Directors regularly evaluates the financial condition of the cooperative and determines when SMECO members’ capital credits are to be refunded.

All eligible active SMECO members will receive a credit on the bill for their primary account. If any member wishes to contact SMECO to designate a primary account, that member may call 1-888-440-3311. Eligible former members will receive a full refund of the balance in their capital credit account if that balance is $100 or less.

To learn more about SMECO, visit its Leader member page.

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