NOV E MB E R
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2021
SECONEWS DEAR MEMBERS, Just in time for the Christmas season, SECO Energy members are cashing in on Capital Credits. At the September Trustees’ Meeting, your Board approved another record-high Capital Credit retirement of $6.46 million to current and former members. Your Capital Credit retirement amount appears on your November billing statement.
each member’s share of the co-op’s margins from the prior year. Individual Capital Credit allocations represent the percentage of the yearly amount of electric service purchased by each member.
Capital Credits are the accumulation of all prior years’ revenues after the co-op’s operating costs and expenses are paid. These credits are allocated on a pro-rata basis to each SECO member’s account as Capital Credits. Annually, SECO examines the cooperative’s financial position and makes a recommendation to the Board of Trustees on SECO ENERGY the “retirement” of Capital MEMBERS ARE Credits. This year’s $6.46 MORE THAN JUST million retirement means SECO is returning a portion CUSTOMERS – THEY of the cooperative’s equity to ARE OWNERS AS current and former members. WELL.
SECO Energy was founded as Sumter Electric Cooperative, Inc. in 1938. Since then, the cooperative has regularly retired/returned a portion of the cooperative’s equity to current and former members. In our 83 years in business, we have retired almost $80 million to current and former members.
Capital Credits is a concept that is unique to not-for-profit, cooperatively structured businesses. I have often talked about the differences between being a customer of an investor-owned or a municipal utility versus a cooperative member. Capital Credits is one of those differences. 212102 Your monthly energy purchases build patronage capital. You and your fellow 220,000+ cooperative members own a portion of SECO’s equity. Ownership is defined through the annual process of allocating
Look for a line item labeled “Capital Credit Ret” on your November billing statement. Active commercial account members with retirements over $600 will receive a check. Former members who receive a retirement over $10 will receive a check. If you move out of SECO’s service area, keep your mailing address updated so we can mail future Capital Credit retirements to your new address. Continued on page 2
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