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Board Issues Over $200,000 in Capital Credits The Board of Directors of Farmers’ Electric Cooperative has unanimously voted to issue capital credit checks totaling over $200,000 to the member-owners of the cooperative. “The last couple of months I have written about the Seven Cooperative Principles that guide our business,” said Mike Sanders, FEC CEO. “As a member-owner of the cooperative, one of the principles is that of Economic Participation by the member-owners. As an owner of the cooperative any margins, or profits, that we make are allocated to you based on your usage.” Checks totaling $209,333 will be mailed in mid-December to those who were members in 1986. The capital credits being retired are a portion of the 1986 allocation, Sanders said. Over the years, FEC has returned $13,539,986 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. |
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