In July, SMECO mailed Capital Credit refund checks to eligible members who no longer have active accounts. Below is the message that was included with the checks. Some checks may have inadvertently omitted the message. Active members received refunds as credits on their July bills. Visit Capital Credits for more information.
SMECO’s Board of Directors is pleased to send you the attached check for your 2023 Capital Credits refund. SMECO’s 2023 general refund totals $3 million. The general refund is a percentage of the funds allocated to members’ Capital Credit accounts for service rendered between 1989 and 2022. If you had electric service with SMECO for any period during that time, and if this check is made payable to you, then you are entitled to this refund. Please cash your check as soon as possible. The check will become void after 180 days from the date issued.
Your Capital Credits refund is tax-free as long as the property served by SMECO was used as a residence only. If the property for which the refund is being received was a business or a residence used for business purposes, please consult your tax advisor.
It’s the Cooperative Way
Cooperatives are businesses that are owned by their customers (a co-op’s customers are called members). Co-op members share the responsibility of ownership by financing the cooperative’s operations, but they also share its rewards. At the end of each year, SMECO’s margins (profits) are allocated to members’ capital credit accounts. SMECO uses its profits to invest in new construction, system improvements, and facility upgrades. The Board of Directors regularly evaluates the financial condition of the co-op and determines when members will receive a refund. Since 1937, SMECO has refunded more than $123 million.
Some companies may be receiving this refund because you had service in your business name. This refund is not associated with any of your customers; it is your refund and a benefit for having service in your name with our cooperative. Please consult with your finance department to find out where they want you to post patronage capital refunds.