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Finding Members with Unclaimed Capital Credits
March 2012

This past December, Farmers' Electric Cooperative returned over $640,000 to its member-owners in the form of capital credits. However, the post office also returned over 140 letters in which former member-owners were due capital credit checks. "This is a problem we have every year," said FEC CEO Mike Sanders. "When members leave the area they forget to leave us an address where we can mail their capital credit checks."

In 2010, it was even worse. Just over 340 capital credit checks were returned by the post office. "Unfortunately, we waste employee labor, as well as postage costs, plus we have additional costs once the letter is returned to us by the post office," Sanders said.

Government regulations require the cooperative make a reasonable effort to locate any former member who has left the cooperative. This requires additional time, for example, in contacting neighbors or attempting to find family members who can put the cooperative in touch with the former member-owner. FEC then publishes the names of the members who have unclaimed capital credits in six area shoppers, located throughout the cooperative's nine-county service territory. "This also adds to the expense," Sanders noted. "If you are going to be moving, and we are no longer going to be your provider of electricity, please make sure you leave us a forwarding address each and every time you move," requested Sanders. "In that way, whenever it is time for you to receive your capital credits, you will receive your money without a problem."

Unclaimed capital credits returned from the early December 2011 mailing are listed on the back page of the March Watts Up edition. If you have any knowledge of how we can contact these former members, either contact the FEC office or contact the individual and let them know we are holding money in their name. Over the years, FEC has returned a total of$15,405,322 to member-owners in the form of capital credits.

FEC to Return Over $640,000 to Members in Mid-December
November 2011

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 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."

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