Please note that capital credits are accumulated based on the customer’s electric usage and the amount they paid for electricity during the time they had SMECO electric service in their name. Each customer’s capital credit balance is unique and the final refund amount is determined by their capital credit balance. Some customers accumulate more capital credits than others because they use more electricity or had service for a longer time.
Capital Credit Estate FAQs
The capital credits for the deceased member cannot be transferred to an active account. The only way SMECO can transfer capital credits is to obtain a Letter of Administration and issue a check payable to the member’s estate.
Note: Capital Credits earned after the customer’s year of death will be transferred to the person who benefited from SMECO electric service and paid the SMECO bill.
The estimated refund includes capital credits for ALL of the member's accounts. The member has one membership associated with all of his/her accounts with SMECO.
The ownership of the property does not matter, and it does not matter who was paying the bills. The capital credits belong to the person whose name was on the SMECO electric account.
SMECO cannot issue the final capital credit refund pursuant to a trust because the SMECO account would have needed to be set up in the name of the trust in order for the capital credits to be an asset of the trust. Additionally, SMECO by-laws state that “Any individual or entity with the capacity to enter legally binding contracts may become a member in the Southern Maryland Electric Cooperative, Inc.”. Therefore, since a trust does not have the capacity to enter legally binding contracts, service cannot be placed in the name of a trust or trustee.
SMECO’s capital credits belong to the member who had service in his/her name. State law requires that a Letter of Administration be obtained before assets can be transferred (refunded).
Maryland Department of Health and Mental Hygiene
201 W. Preston Street, Baltimore, MD 21201
Vital Records 410-764-3170
If the customer did not provide SMECO with a Beneficiary Designation form prior to their death, a letter of administration or similar court document appointing a personal representative for the member’s estate will be required. A letter of administration is granted by the probate court to appoint the appropriate person(s) to handle a deceased person’s property or assets. SMECO capital credits are assets of the person whose name was on the electric account, and they can only be refunded if we receive a Letter of Administration. (View the sample at right.)
- If the member was a landlord for rental properties, any landlord agreements with SMECO will need to be canceled and new agreements established.
- The member’s final debt, if any, owed to SMECO should be paid promptly.
- There may be additional requirements for commercial accounts.
- Original letter of administration or testamentary with raised seal (for estates only)
- Original death certificate for the member (for a joint account, both death certificates are required)
- Capital Credits Special Refund Request form
- All of the deceased member’s SMECO electric accounts must be closed.