SECO Energy Announces $2.01 Million Capital Credits Retirement to Members
SECO Energy, an electric cooperative serving over 235,000 homes and businesses in seven Central Florida counties, is excited to announce the approval of a $2.01 million Capital Credits retirement to its current and former members. The decision, approved by the SECO Energy Board of Trustees, highlights the cooperative’s ongoing commitment to its members and communities.
Capital Credits are a unique feature of cooperatively formed businesses like SECO Energy. They signify the true cooperative difference, where those purchasing electricity from SECO are not just customers but partial owners of the cooperative. This ownership structure is fundamental to the cooperative business model, allowing SECO Energy to reinvest unretired capital into reliability improvements while ensuring that members receive a return of member-furnished capital.
The retirement of Capital Credits follows a diligent process. After covering all operating costs and expenses, SECO Energy designates the prior year’s excess revenues as Patronage Capital. These margins are then allocated pro-rata to each member’s account as capital credits, representing the percentage of the annual amount of electric service purchased by each member.
CEO Curtis Wynn remarked, “SECO Energy has a strong tradition of returning Capital Credits to our members. In fact, we have retired nearly $83 million to our membership over the years, with almost $50 million retired in the last decade alone. This represents a significant commitment to our members and communities and exemplifies the cooperative principle of member benefit.”
The role of the SECO Energy Board of Trustees is pivotal in the retirement of Capital Credits. They rigorously review the cooperative’s financial position, consider management’s recommendation, and determine the approval of the Capital Credits return. This process ensures transparency and accountability in how the funds are allocated to the cooperative’s members.
The retirement of $2.01 million in Capital Credits is a testament to SECO Energy’s unwavering commitment to its members. As a cooperative, not-for-profit electric provider, SECO Energy remains dedicated to serving its communities with integrity and dedication.
Wynn emphasized, “SECO members are at the heart of everything we do, and we look forward to providing you with reliable electricity and the benefits of being part of our cooperative family. Your satisfaction and well-being are our top priorities.”
Current members will find the credit on their November billing statement, while former members will receive a check. This announcement underscores SECO Energy’s resolve to fulfill its mission of providing reliable and innovative energy services to its members and communities.
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