SECO Energy, the not-for-profit electric cooperative, is retiring a record $6.1 million in Capital Credits to its 210,000-plus current and former members.
During its September board meeting, the SECO board approved the record-high $6.1 million Capital Credit retirement. Current members will see their portion of the retirement on their November billing statement as a line item labeled “Capital Credit Ret.” Active commercial members with retirements over $600 will receive a check. Former members who receive a retirement over $10 will receive a check at their last known mailing address.
Capital Credits are unique to not-for-profit, cooperatively structured businesses. SECO members own a portion of the cooperative’s equity. Members’ energy purchases build patronage capital. Ownership is defined through the annual process of allocating 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.
“I am especially pleased that SECO can offer members a record-high Capital Credits retirement payout this year,” CEO Jim Duncan said. “The COVID-19 pandemic and economic uncertainty have been stressful. Capital Credits are a tangible benefit of the not-for-profit cooperative business model. The cooperative has retired over $72.9 million to current and former members since energizing the first few hundred services in 1938.”
Capital Credits are the accumulation of all prior years’ revenues after SECO’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 in accordance with the cooperative’s not-for-profit 501(c)12 status. Visit SECOEnergy.com for more information.