Co-ops work for members, not for profit$

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Co-ops work for members,

not for profit$

Every penny you pay into the Cooperative is invested in the Cooperative. Every penny that's not used comes back to you.

Types of utilities - cooperativesDiagram of people

COOPERATIVES

Owned by the people they serve

Not-for-profit

Types of utilities - investor-owned Diagram of people with line chart

INVESTOR-OWNED

Private companies owned by shareholders/investors

Operate for a profit

Types of utilities - municipal Government building

MUNICIPAL SYSTEMS

Owned by cities, counties, or states

Not-for-profit

When customers establish service with SMECO, they become members of the cooperative.

Your monthly bill - standard offer serviceLight bulb with cash inside

STANDARD OFFER SERVICE

The cost of the electricity each member uses. This is a pass-through cost with no mark-up.

Not included in capital credit allocation.

Your monthly bill - regulatory, state, and local taxesperson holding spreadsheet

REGULATORY, STATE, AND LOCAL TAXES

Fees required by state and local government to cover taxes and other government-imposed charges.

Not included in capital credit allocation.

Your monthly bill - distribution servicecrew working on utility pole

DISTRIBUTION SERVICE

The cost associated with keeping the cooperative running from day to day to provide reliable power to its members.

Included in capital credit allocation.

coinsDollar bill with title Margins

At the end of each fiscal year, any margins not used for expenses are allocated to each member’s account. Allocated margins are used as capital to fund new construction, system improvements, and maintenance.

Margins equal Capital

When the amount of capital exceeds the threshold set for the financial well-being of the cooperative, SMECO’s Board of Directors can retire the capital credits. When capital credits are retired, members are issued a capital credit refund.

Amount of Capital Credit Refund?Use = $ Percentage of Margin Each member’s share of the co-op’s margins is based on how much electricity the member used and the rate at which the account was billed.

WHO QUALIFIES?

Credit on bill

Members who have an active account

Member received electricity before the end of the previous fiscal year

Checks issued

Inactive, eligible former members who received electricity before the end of the previous fiscal year

Minimum check amount must be met

Special refunds

Estates of deceased members

Unpaid final bills