The Board of Director of Farmers’ Electric Cooperative has voted to issue capital credits to the member-owners of the cooperative.
Click to hear KMZU’s Brad Hartman talk with spokesperson Steve Shoot:
Press Release from Farmer’s Electric Cooperative
The Board of Directors of Farmers’ Electric Cooperative has unanimously voted to issue capital credits totaling $644,565.89 to the member-owners of the cooperative. The capital credit checks will be mailed to current and former FEC members in mid-December.
Over the years a total of $15,405,322 has been returned to the member-owners of Farmers’ Electric. The FEC Board of Directors approved the issuance of the capital credits at its September 29 meeting.
“Returning our margins, or profits, to our members is but one way electric cooperatives are different than any other utility,” said Mike Sanders FEC CEO. “To receive money from an investor-owned utility, you have to own stock in the company to receive a dividend check.”
Capital credits are paid on a first-in, first-out basis. The amount of capital credits returned is based on the current equity level of the cooperative and the margin from the previous year. The checks to be issued in December will complete the allocation for 1989 and 1990.
Each year, the margins are allocated to the individual member, based on their specific usage over a specific time period.
Sanders also issued a reminder to members who move to a different community or area not served by FEC, to contact the cooperative office and provide a change of address.
“In this way, we will be able to continue to deliver the capital credit check owed to you,” said Sanders. “The capital credit checks will continue to be delivered to the member until they are no longer eligible to receive the capital credit payment.”