HUGHESVILLE, Md. — The Southern Maryland Electric Cooperative (SMECO) is distributing nearly $7 million in capital credits to its members, reflecting the not-for-profit cooperative’s commitment to returning savings when financially feasible.
Of the total, a general refund of approximately $4.6 million will be issued this month. Eligible active members will see credits applied directly to their July electric bills, while checks will be mailed to eligible former members. SMECO will also distribute about $2.4 million in special refunds throughout the year, including payments to 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.
Cox emphasized the unique structure of electric cooperatives. “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 reported margins — revenue minus expenses — of more than $24.4 million for 2025. These margins serve as working capital for new construction, system improvements, and facility upgrades. Unlike investor-owned utilities, SMECO makes no profit on the cost of energy itself. Margins are determined by overall revenue and expenses, not energy rates.
At the end of each year, SMECO allocates margins to individual member capital credit accounts based on electricity usage and billing rates. The SMECO Board of Directors regularly reviews the cooperative’s financial health to decide on refund timing.
Refunds will begin appearing on members’ bills starting July 13, with checks mailed to former members beginning July 16. Active members will receive credits on their primary account. Those wishing to designate a primary account can contact SMECO at 1-888-440-3311.
Former members with balances of $100 or less will receive full refunds. SMECO encourages members who move out of the service area to update their mailing addresses to ensure they continue to receive refunds. Address updates can be made through the cooperative’s website.
This capital credit refund cycle underscores the member-owned nature of SMECO, which serves Southern Maryland residents in Charles, St. Mary’s, and parts of Calvert and Prince George’s counties. By returning margins, the cooperative helps offset costs for the very members who help finance its operations.
