volume 65 - issue 7 - july 2015
Watch for your capital credits refund in mid-July
SMECO is issuing capital credit refunds totaling nearly $3 million. The general refund amounts to approximately $1.52 million and the special refund to estates of deceased members and to unpaid final bills is $1.44 million. The general refund will be issued beginning in mid-July as a credit on customer-members' bills.
All eligible, active customer-members will receive a credit on the bill for their primary account. If you wish to contact SMECO to designate your primary account, call 1-888-440-3311. Inactive members will receive a full refund of the balance in their capital credit account if the balance is $100 or less. Capital credits are used to pay any amount due if a customer had an unpaid final bill for electric service.
According to Austin J Slater, Jr., SMECO president and CEO, "This is our favorite time of year. Our customers realize the benefit of being electric cooperative members when they receive a portion of the co-op's margins as a credit on their bill. That's something the customers of an investor-owned utility would never see."
SMECO's net margins for 2014 totaled $8,428,000. Because SMECO is a cooperative, margins—revenue minus expenses—are retained to provide working capital for new construction and system improvements. Margins are refunded to customer-members in the form of capital credits when SMECO's Board of Directors determines that the cooperative's financial conditions can be met.
Each 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.