SOUTHERN MARYLAND – Southern Maryland Electric Cooperative (SMECO) is refunding members’ capital credits totaling nearly $7 million. Of that total, a general refund of approximately $4.6 million will be issued in July. Eligible active members will receive credits on their bills, and checks will be issued to eligible former members. SMECO will pay special refunds of about $2.4 million throughout the year to include estates of deceased members.
“Passing on savings to our members is a basic principle of cooperatives, and we are happy to issue capital credit refunds to SMECO members when we have met financial obligations,” said Sonja M. Cox, SMECO president and CEO. She added, “Cooperatives represent a unique business model because they are not-for-profit companies owned by the customers receiving electricity—their members. Every time SMECO members pay their electric bills, they are investing in the cooperative, and we use that investment to improve reliability and service.”
SMECO’s margins for 2025 totaled more than $24.4 million. SMECO uses margins—revenue minus expenses—as working capital for new construction, system improvements, and facility upgrades. Cox explained, “Our members help to finance SMECO’s operations, and they realize one of the benefits of being a co-op member when they receive a refund.” SMECO’s margins are based on the cooperative’s revenue and expenses, not the cost of energy. SMECO makes no profit on energy costs, and energy rates have no impact on SMECO’s margins.
At the end of each year, SMECO allocates its margins to a special account for each member, based on how much electricity the member purchased and the rate at which the account was billed. SMECO’s Board of Directors regularly evaluates the financial condition of the cooperative and determines when the cooperative will refund SMECO members’ capital credits. The cooperative will credit refunds to members’ bills beginning July 13 and mail checks to eligible former members beginning July 16.
All eligible active members will receive a credit on the bill for their primary account. If members wish to contact SMECO to designate their primary account, they may call 1-888-440-3311. Eligible former members will receive a full refund of the balance in their capital credit account if the balance is $100 or less. Whenever SMECO members move out of the cooperative’s service area, they should contact SMECO to update their mailing address in order to receive refund checks in the future. Members can visit the cooperative’s website to update their mailing address.
SMECO – The Cooperative Difference
SMECO was incorporated in 1937 and is one of the 15 largest electric cooperatives in the United States with more than 181,000 member services in Charles County, St. Mary’s County, southern Prince George’s County, and most of Calvert County.
Electric cooperatives are shaped by the communities they serve because cooperatives are owned by their customers. Cooperative members elect the men and women who serve on the Board of Directors. 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 cooperative and determines when members will receive a refund.
Since 1937, SMECO has refunded more than $133.5 million.
As a cooperative, SMECO will always put its members first and be responsive, reliable, and resourceful—the power you can count on.
