The board of directors of Farmers’ Electric Cooperative has unanimously voted to issue capital credits totaling $532,723.31 to the member-owners of the cooperative.
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The capital credit checks will be mailed to current and former FEC members in mid-December.
Over the years a total of $16,567,536 has been returned to the member-owners of Farmers’ Electric.
The FEC Board of Directors approved the issuance of the capital credits at its Sept. 30 meeting.
"Any margins, or profits, that FEC makes are allocated back to our members based on their specific usage over a specific time frame," explained Mike Sanders, FEC CEO. "In this case, it involves the margins allocated for 1988."
Capital credits are paid on a first-in, first-out basis. The amount of capital credits retired is based on the current equity level of the cooperative and the previous year’s margin.
"The issuance of capital credits to the members of the cooperative is but one way your cooperative is different than other utilities," said Sanders. "In investor-owned utilities you have to purchase stock to receive a dividend payment."
Sanders also reminded members it is important to let FEC know whenever they move, especially if they leave the Farmers’ Eclectic system. In this way, Sanders said, the capital credit check will be able to be delivered to the member until they are no longer eligible to receive the capital credit payment.