Capital Credits

Power Perks – Membership Has Its Perks

Capital Credits & the Cooperative Model

• Capital credits are a unique feature specific to the cooperative business model.
• SEMO Electric operates as a not-for-profit organization.
• It does not raise capital from outside shareholders or investors.
• Capital credits primarily fund long-term capital investments such as new electric facilities, electric system upgrades, and equipment.
• Capital needs are financed from just 2 sources: capital credits and long-term debt.

Balancing Capital Credits & Debt

• An underlying principle of the cooperative business model is to strike an appropriate balance between capital credits and debt.
• Over time, capital credits are returned to members on a first-in, first-out (FIFO) basis, along with a percentage of the most recent year’s profits.
• SEMO Electric’s financial statements at year-end determine whether revenue exceeded costs and resulted in a profit.
• This profit is “allocated” to electric members’ accounts as capital credits based on their electricity usage and payments throughout the year.

Annual Budgeting & Challenges

• The annual budgeting process is always a work in progress, based on potential income and necessary expenses.
• Weather plays a significant role, as it is unpredictable and affects operations.
• Balancing between returning capital credits and adjusting rates is a complex and active management process vital for providing essential services.

Power Perks Checks & Address Updates

• Current members will receive bill credits, which will appear on bills due in November instead of receiving a check. 
• Former members will continue to receive checks if their capital credit amount is $10 or more. 
• If the amount of the retirement is $10 or less, the amount will be carried over to the following year.
• Members who cease to purchase energy from SEMO Electric Cooperative are urged to keep their address updated for future capital credit refunds.

Please call (800) 813-5230 to update your information. Keeping your details current helps ensure you receive your capital credit refunds promptly.

Unclaimed Capital Credits

In accordance with Article 7, Section 3 of SEMO Electric Cooperative’s Bylaws, below is a listing of patronage capital refunds uncashed from 2023,  If not duly claimed within sixty (60) days of this notice (September 3, 2025), this money shall be deemed assigned and donated to the Cooperative to be reallocated to the membership. 

To claim a Capital Credit, please print and fill out the appropriate affidavit form below, then return it to our Member Services Team either by dropping it off at our office or by mailing it to: PO BOX 520, Sikeston, MO 63801.

Individual Affidavit


Business Affidavit