Capital Credits

About Capital Credits

As a member-owner of SECO Energy, you share in the cooperative’s success. Capital Credits represent your share of the margins generated each year – returned to you because we operate at cost, not for profit. This is one of the most meaningful benefits of cooperative membership and a clear example of the Cooperative Difference in action. 

Capital Credits Returned to Members

In 2026, SECO Energy’s Board of Trustees approved the retirement of $4.84 million in Capital Credits for eligible current and former members. Since 1938, SECO Energy has returned more than $90 million in Capital Credits to its members — a reflection of the Cooperative Difference in action.

Where to Find More Information

Read Board President Gerald Anderson’s message in the November 2026 SECO News for details about the latest Capital Credits retirement.
Review your November billing statement for information about your Capital Credits

Capital Credits FAQs

Sumter Electric Cooperative, Inc. (d.b.a. SECO Energy), is a not-for-profit member-owned cooperative. 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.

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 SECO Energy 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.

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Capital Credits

About Capital Credits

Capital Credits FAQs

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High School Juniors:

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What are Capital Credits?

Are Capital Credits returned to Members?

Are Capital Credits returned to Commercial Members?

Do I earn interest on Capital Credits?

Do I have to report Capital Credits on my Tax Return as Taxable Income?

What if I move away?

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