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2020
SECONEWS Last month I announced a higher memberfavorable Power Cost Adjustment (PCA) or “Hot Bucks” credit. This month, I have more good financial news. During the September Trustees’ Meeting, your Board approved a record-high Capital Credit retirement of $6.1 million to current and former members. Look for your Capital Credit retirement on your November bill.
Current members will see the retirement amount on the November billing statement as a line item labeled “Capital Credit Ret.” All active commercial members with retirements over $600 will receive a check. Former members who receive a retirement over $10 will receive a check as long as they’ve kept SECO advised of an updated mailing address. If you move out of SECO’s service area, keep your mailing address updated so we can send future Capital Credit retirements your way.
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For many, the COVID-19 pandemic and economic uncertainty of 2020 have been stressful. I am pleased that our ...YOUR BOARD members will receive a tangible Th e co n ce p t o f C a p i t a l Credits is unique to not-forAPPROVED A RECORD- benefit of the not-for-profit cooperative business model profit, cooperatively structured HIGH CAPITAL CREDIT with a $6.1 million Capital Credit businesses. You and your retirement this year. Since we fellow 210,000+ cooperative RETIREMENT OF $6.1 energized the first few hundred members own a portion of SECO MILLION TO CURRENT members’ services in 1938 as Energy’s equity. Your energy Sumter Electric Cooperative, Inc. purchases build patronage capital. AND FORMER to now doing business as SECO Ownership is defined through Energy, we have retired $72.9 the annual process of allocating MEMBERS. million to current and former each member’s share of the comembers. op’s margins from the prior year. Individual Capital Credit allocations represent the It is our privilege to be your electric provider. percentage of the yearly amount of electric service purchased by each member. Sincerely, Capital Credits are the accumulation of all prior years’ revenues after the co-op’s operating costs Jim Duncan and expenses are paid. These credits are allocated Chief Executive Officer on a pro-rata basis to each SECO member’s account as Capital Credits. Annually, SECO examines INSIDE THIS ISSUE the cooperative’s financial position and makes • Old Farmer’s Almanac a recommendation to the Board of Trustees on the “retirement” of Capital Credits. This year’s • AMI FAQ $6.1 million retirement means SECO is returning a • Toys For Tots portion of the cooperative’s equity to current and former members. • Florida Fauna & Flora Hurricane Handbook NOVEMBER 2020 | SECO NEWS
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