SMECO Rate Adjustment in Effect
The Southern Maryland Electric Cooperative featured this letter from Sonja M. Cox, SMECO president and CEO, and W. Rayner Blair III, chairman of the board, in its June member newsletter:
Maintaining sound financial health is not just good business practice—it is the foundation for everything we do. The cooperative’s financial health affects our ability to serve our members, plan for the future, support our employees, and fulfill our mission. For cooperatives, that impact is even more personal—because our customers are also our owners, our neighbors, and members of the very community we serve.
We are all feeling the effects of inflation, rising costs of goods, and broader economic uncertainty. From materials and fuel to equipment and day-to-day operations, expenses are up across the board. In the face of these challenges, we remain committed to disciplined financial stewardship—balancing today’s realities with tomorrow’s responsibilities.
As part of that balance, in 2024, we had to make the difficult, but necessary, decision to request a distribution rate increase from the Public Service Commission of Maryland (PSC). This decision was not made lightly, and it reflects our deep responsibility to maintain the integrity of our system while continuing to deliver safe, reliable service. Every dollar is carefully accounted for, and the adjustment granted by the PSC helps ensure we can meet rising costs while reinvesting in the infrastructure and services our members depend on.
That also means continuing to look for ways to save and operate more efficiently—without compromising reliability, safety, or the high standard of service our members count on. Every cost-saving measure helps offset rising expenses and positions us to better serve our members long-term.
At the same time, we remain focused on being a good corporate citizen. Sound financials enable us to support our communities, return margins, keep rates fair over time, and continue delivering on the cooperative difference. It is a delicate balance—but it is one we’re proud to uphold.
As we move forward, our commitment is to make smart, values-driven decisions that strengthen our financial foundation while keeping people—our members, employees, and the community—at the center of it all.
Sonja M. Cox, President and CEO
W. Rayner Blair III, Chairman of the Board
SMECO – The Cooperative Difference
SMECO was incorporated in 1937 and is one of the 15 largest electric cooperatives in the United States with more than 170,000 member accounts in Charles County, St. Mary’s County, southern Prince George’s County, and most of Calvert County.
Electric cooperatives are shaped by the communities they serve, because co-ops are owned by their customers. Co-op members elect the men and women who serve on the Board of Directors. Members share the responsibility of ownership by financing the cooperative’s operations, but they also share its rewards.
At the end of each year, SMECO’s margins (profits) are allocated to members’ capital credit accounts. SMECO uses its profits to invest in new construction, system improvements, and facility upgrades. The Board of Directors regularly evaluates the financial condition of the co-op and determines when members will receive a refund. Since 1937, SMECO has refunded more than $128 million.
As a cooperative, SMECO will always put its members first and be responsive, reliable, and resourceful — the power you can count on.
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The SMECO 24/7 mobile app is available at www.smeco.coop/247. To learn more about SMECO, please visit its Leader member page.
