September 2025 | Capital Credits Coming This Fall | Current Members will See Bill Credit

Posted: September 1, 2025 at 9 a.m.

By Sean J. Vanslyke | sean@gosemo.com

At SEMO Electric, we don’t operate to make a profit—we operate to serve. That’s why when there’s money left over after paying for power generation and transmission, operations, and maintenance, we give it back to you. These refunds are called capital credits, and they represent your share of the Cooperative’s financial success.

This fall, we’re returning $1,054,735 in capital credits from margins earned in 1987 and 2024. Since 1995, SEMO Electric has returned over $20 million to our member-owners. That’s the power of belonging to a cooperative.

To make the process easier and more efficient, we’re making a change in how capital credits are returned:

  • Current members will see a bill credit applied to bills due in November, if the amount is $10 or more.
  • Former members will receive a check by mail, if the amount is $10 or more.
  • If the amount is less than $10, for either group, it will be carried forward to the next year.

So how does this all work? Each year, if there’s a margin left after expenses, we allocate that amount to members based on their electricity use. This process—called allocation—reflects each member’s ownership share in the Cooperative. The allocated funds are not available for immediate withdrawal. Instead, they are reinvested into the Cooperative to reduce debt, improve infrastructure, and strengthen our financial position.

The actual return of those funds is called a retirement. As financial conditions permit, the Board of Directors approves the retirement of capital credits—meaning a portion of the previously allocated margins is returned to members. While it takes time, members eventually receive those funds, reinforcing our not-for-profit business model and member-focused mission.

This fall’s capital credit retirement is just one more example of how SEMO Electric puts members first. When we do well, you benefit. That’s not just good business—it’s the cooperative way.

Book of the Month: “You can’t control what another adult says, does, or thinks. Try to and you’ll regret it. The more you Let Them think what they want, the better your life gets.” – From The Let Them Theory by Mel Robbins

Be smart. Act safely. Keep pushing forward!

Sean is the Chief Executive Officer and General Manager of SEMO Electric Cooperative and GoSEMO Fiber.

From capital credits to collaboration, belonging to a cooperative brings real benefits. SEMO Electric recently joined fellow cooperatives – at Callaway Electric Cooperative in Fulton, Mo. -for the fourth annual Missouri Cooperative Broadband Summit. The one-night, two-day event was packed with co-op leaders from across Missouri, all sharing best practices to improve how we deliver electricity and fiber-fast internet. Like SEMO, Callaway Electric also returns capital credits to active members as a bill credit—just one more way cooperatives put their members first.