How do capital credits work?

You need to know 2 things about capital credits in order to understand how they work for you:

Allocations

• Each year, you are "allocated" your portion of the previous year's profit based on the amount of electricity you purchased from SEMO Electric in relation to the total amount of electricity purchased by all members during the year.
• This amount is put into a "holding account" for a number of years and used by SEMO Electric to fund capital needs for items such as power line construction, transformers, trucks, inventory, and other equipment.
• This is an underlying principle of the cooperative business model and is one more way we keep your electric rates as low as possible.

Retirement

• SEMO Electric uses the amount "allocated" to you for a time but then returns this amount to members in the form of retirements.