The Board of Directors of Farmers’ Electric Cooperative has unanimously voted to issue capital credit checks totaling nearly $300,000 to the member-owners of the cooperative.
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"As a member-owner of Farmers’ Electric, one of the seven cooperative principles is that of economic participation by the member-owners," said Mike Sanders, FEC CEO. "As an owner of the cooperative any margins, or profits, that we make are allocated back to our members based on their usage over a specific time frame."
Checks totaling $290,509 will be mailed in mid-December to those who were members in 1986. The capital credits being retired are the remainder of the 1986 allocation and about 44% of the remaining 1987 allocation, Sanders said.
Over the years, FEC has returned $13,830,495 to its member-owners. Capital credits are paid on a first-in, first-out basis. The amount of capital credits retired will be based on the current equity level of the cooperative and the previous year’s margin.
"The issuance of capital credits is but one way in which cooperatives are different than other utilities," Sanders explained. "If for example, you received your electric service from an investor owned utility, those profits would be returned to the shareholders as dividend payments."
Sanders also noted that it is important for members who move from the FEC system to keep their current address on file with the cooperative. In this way, Sanders said, when the capital credit monies they have accrued are paid, the cooperative will be able to issue their check to the correct address.