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FOR FURTHER INFORMATION: Contact Steve Shoot

The Board of Directors of Farmers’ Electric Cooperative has unanimously voted to issue capital credit checks totaling over $700,000 to its member-owners. The vote to approve the issuance of capital credit monies was taken at the board’s September meeting in Chillicothe. The checks will be issued and mailed by mid-December.

The overall total of capital credit funds to be returned to members in December is $722,044.42. With this latest round of capital credit checks, FEC will have issued a total of $12,908,348 over the years.
“Your Board of Directors has to look at whether or not to issue capital credits each year,” explained Dan Bryan, CEO and Executive Vice-President of FEC. “First, they must determine if it is feasible to issue the funds and if they do decide to issue the monies, they must determine the overall amount.” 
To receive a capital credit check, a resident or business must be a member of FEC for a period of two years or more. The minimum capital credit check to be issued will be $5.

Capital credits are the profits, or margins, that are left over from revenues after all operating expenses are deducted. Each year margins are allocated to member/owners receiving electric service from the cooperative.

This year’s capital credit funds will close out the 1985 allocated capital credits and 1% of the capital credits allocated from the years 1986-2003.

The issuance of capital credit monies to member/owners is just one of the differences between cooperative membership and investor-owned utilities (IOU’s). IOU profits are paid to shareholders who have purchased stock in the company. Members of Farmers’ Electric Cooperative automatically become eligible for capital credits after being a member for just two years.

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