FAQ

Sumter Electric, aka SECO Energy, is a not-for-profit member-owned corporation. Sound financial practices and legal requirements are such that each year we must have an excess of revenues over expenses. This excess is referred to as margins, and by law, must be allocated to each of the members who paid electric bills during the year. This is done by dividing the Cooperative’s total margins by total revenue, and multiplying the resulting percentage by each member’s payments for SECO service for the year. Each member’s portion is referred to as his/her Capital Credits, also called patronage capital, for the year.

Capital Credits may be returned by general or estate retirements as approved by our Board of Trustees, based on the financial condition of the Cooperative. General retirements are normally made on an annual basis to current and former members. Current members receive the refund as a credit on their electric bill usually in November of each year. Former members receive a check. Heirs or estates of current or former members may file a claim for assignment of accumulated Capital Credits. Payments are made as part of the general retirement process.

Capital Credits are allocated to commercial members in the same manner as they are to residential members. These monies are returned to commercial members when the Board of Trustees makes a general retirement.

Since the Cooperative is operated on a user-owned, non-profit basis, you do not receive interest or dividends on your Capital Credits. To pay interest, electric rates would have to be increased.

Capital Credits are a refund of prior years’ electric costs and need not be reported as taxable income to holders of residential accounts. Commercial account holders should discuss any refund with their tax preparer/advisor.

If you move from our service area, the Capital Credits accumulated in your account will remain in your name. It is important that you keep the Co-op informed of your current address so that we can send you a refund when a general retirement is made. By keeping SECO informed of your current address you will avoid a monthly service charge assessed on accounts with unclaimed refunds.

The Surge MitiGator™ will protect large appliances (motor and compressor) such as the air conditioner, washer, dryer, refrigerator, stove and garbage disposal.

Unfortunately, there is nothing on the market that can protect your home from a direct lightning strike.

In addition to the Surge MitiGator™ installed at your electric meter, SECO Energy recommends point-of-use devices for sensitive electronics. Although many different types are available at most major home improvement stores, it is important to match the device or suppressor to the item you are trying to protect. For example, a surge suppressor designed to protect your TV will include a cable and/or satellite hookup. A modem or router protector will connect to the network cable and to the electricity source.

Installation of the Surge MitiGator™ does not require an appointment. As a courtesy, SECO Energy’s qualified installer will knock on the door to advise that the power will be off for a few minutes during installation. If no one is home, the installation will be completed.

Yes, there is electric surge damage coverage of $5,000 per appliance, per occurrence, with a lifetime maximum of $500,000.

The Surge MitiGator™ is equipped with two red lights that stay on continuously. This indicates the arrester is working properly.

Well pumps, gates, alarm systems, sprinkler systems, and most pool and spa pumps in addition to sensitive electronics are not covered.

The Surge MitiGator™ warranty is the same regardless of whether you choose to purchase or lease the product.

The Surge MitiGator™ is not a source of energy and will not prevent clocks from blinking after an outage.

SECO recommends you check with your insurance carrier if our Surge MitiGator™ protection would provide a benefit to your premium.

The meter-based surge protection is available for lease or purchase. The monthly lease fee is $5.95 plus tax with an installation charge of $40. The purchase price is $349 plus tax (includes installation).

· Our Member Service Centers accept cash, check, money orders, debit and credit cards or cashier’s checks.

· SmartHub – accessible through secoenergy.com or by downloading the SmartHub application on smartphones and tablets accepts checks and credit cards.

· PayNow – accessible through secoenergy.com or 1-877-371-9382 accepts checks and credit/debit cards (Visa, Mastercard, American Express or Discover).

· Bank draft – sign up through secoenergy.com (SmartHub) or by contacting Customer Service (not available on Prepaid accounts) accepts checking accounts only.

· Fidelity Express Pay Stations – various authorized pay stations located throughout SECO’s territory – accepts checks and cash (not recommended for Prepaid accounts due to posting delay).

The customer charge recovers the costs associated with maintenance of the lines, poles, transformers, conductor, meters and other electric infrastructure supporting the delivery of power. The customer charge also recovers costs associated with customer service, billing services, insurance, tree trimming, storm hardening activities and a variety of other expenses associated with the delivery of power. The customer charge is represented as a line item on the monthly bill (and is subject to change based on Board Approval). The practice of collecting this fee is an industry standard for electric companies. SECO Energy’s rate tariff and associated customer charges are approved by the Florida Public Service Commission.

The Customer Charge reflects the cost of delivering power and maintaining infrastructure based on the number of days in the billing cycle. The costs of virtually everything required to operate a modern electrical system have been increasing rapidly. Wholesale energy costs have risen as have those associated with maintaining our distribution infrastructure. Following the principles of prudent financial management, SECO conducts periodic cost studies to ensure proper alignment with our rates. SECO continuously seeks ways to navigate rising construction, maintenance, energy and labor costs, providing its members with top-notch customer service and outage response times.

The Power Cost Adjustment (PCA) aka “Hot Bucks,” provides SECO with a factor to accurately bill the member for the fluctuating cost of wholesale power. When power costs are high, the PCA is typically a charge. When power costs are low, the PCA is typically a credit and appears as a line item on the monthly bill labeled “Hot Bucks – PCA.” Since power costs (also known as fuel charges) fluctuate, industry regulators allow power costs to be passed through to the customer. SECO does not retain the revenue from the PCA when it is a charge on the bill. The money generated goes directly back to Seminole Electric to pay expenses related to the cost of purchasing fuels like natural gas and coal that are used in generating electricity. SECO members share in this adjustment, whether it is a credit or an expense, as they do the other benefits and costs associated with providing electric service. The PCA is calculated per kilowatt hour used.

Storm hardening includes SECO’s pole inspection and replacement program and equipment upgrades/replacements in aging areas. The budget for upgrading existing infrastructure and constructing new facilities to meet growing power demand grows in step with housing and business growth within our service area.

SECO placed a $600 limit on credit card payments to prevent members using this service from having to pay a convenience fee. This cost would otherwise be passed on to our entire membership.

We treat all our members the same since they all use the same product; therefore, the rates are the same for all.

We maintain our equipment and service to the meter location throughout the year and have the same expenses, therefore, we do not offer a seasonal rate.

The minimum deposit for a residential account is $400.

The deposit requirement, including additional residential accounts, may be waived if one of the following criteria is met:

• A residential member with satisfactory credit rating from a SECO approved reporting agency.

• A residential member with preceding 24 consecutive months of satisfactory payment record.

A payment delinquency initiates an account deposit reassessment. Deposit calculation is equal to two times the average monthly bill for the service address during the 12 preceding occupied months, $400 minimum.

There is no interest on deposits. The Cooperative shall at all times be operated on a Cooperative non-profit basis for the mutual benefit of its patrons. If we paid interest it would be rolled into the rate and we would collect it back at a little higher amount when an account goes through the billing process.

Sign up for automatic bank draft through our online account manager SmartHub. You can also contact Member Services and provide your checking account information. Auto draft is not available for prepaid accounts.

We cannot limit credit card payment amounts for auto drafts. Since we do not want to pass on the associated credit card charges to our entire membership, we choose to not use credit cards for this service.

For security and privacy protection, we do not store credit card or checking information when you use PayNow. We do store credit/debit card and checking information in SmartHub (aka EBill).

A gross receipts tax is a tax paid when purchases are made on specific goods. It is similar to a sales tax, but it is levied on the seller of goods or services provided to consumers.

The rate per kilowatt hour for Residential Service is tiered. As of May 1, 2023, the energy charge for the first 1000 kWh is currently 0.1121 per kWh, and usage over 1000 kWh is currently 0.1321 per kWh. These are subject to change. Commercial account rates vary. Contact us for more information by phone or email.

Yes. SECO Energy remains a fiscally sound not-for-profit cooperative corporation. SECO operates responsibly in the interest of providing reliable, innovative and affordable energy services to its members. Growth in our service area continues at a rapid pace. SECO’s equity position remains in line with loan covenants and we continue to retire Capital Credits to members annually. Review SECO Energy’s Annual Meeting of Membership video, or our Annual Report for more details on the financial health of the Cooperative.