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| Capital
Credits 2006
FOR FURTHER INFORMATION: Contact Steve Shoot The Board of Directors of Farmers' Electric Cooperative has unanimously voted to issue capital credit checks totaling over $400,000 to the member-owners of the cooperative. The board also unanimously voted to change the method in which capital credit monies are issued. "The rate increases we are facing in the future years are bringing about the change in the way we will be issuing our capital credit checks," explained Mike Sanders, FEC Chief Executive Officer. "If we continued to pay the capital credits the way they have been issued in the past, we would have been forced to raise our rates just to make the payment. The board chose the option of keeping the cooperative's electric rates as low as possible for as long as possible in this decision." The change in the capital credit payment will take place this year, according to Sanders. Capital credit checks from FEC are issued in mid-December. The retirement of $422,305 of the 2006 capital credits will bring the overall total of capital credit monies retired over the years to $13,330,653. Effective this year, FEC will pay capital credits on a first-in, first out basis. However, the percentage of capital credits retired will be based on the current equity level of the cooperative and the previous year's margin. The capital credit monies retired this year are slightly more than half of the 1986 allocations. 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 noted, when the capital credit monies they have accrued are paid, the cooperative will be able to issue their check to the correct address. |
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