Southeast Colorado Power’s rates are calculated to pay for the cost of doing the business in supplying energy to our consumers.  These costs include the purchase of energy, system maintenance, improvements and replacements, administrative expenses, interest expense, and insurances, as well as other expenditures that benefit our consumers.  Margins equate to the amount of revenue collected in excess of the cost of business.   

Capital Credits are margins that are allocated to each member who purchases electric service during the year the margins are earned.  Margins are allocated in proportion to each member’s usage.  As required by law, we send out a notice to each member who receives an allocation.  Each allocation is a permanent record of a debt that is owed to the member.

Capital Credits can be retired when the locally elected Board of Directors determines that the cooperative is financially able to do so.  In addition to meeting the business costs outlined above, there are other financial factors the board considers.  Factors such as debt load, mortgage requirements, capital requirements and cash requirements are all considered.  Any retirement that would cause additional borrowing and interest expense has been avoided.

For information regarding your personal Capital Credit allocation, please contact billing@secpa.com.