Capital Credits

First Electric refunds a record $5 million in capital credits!

Only your local electric cooperative makes every member an owner of the business. Unlike other electric utilities, First Electric Cooperative exists to make sure you have a reliable source of electricity, not to make a profit. As a Member/owner, you share in the profits in the form of Capital Credits.

First Electric works hard every day to keep your rates as low as possible, and it’s nice to know that when there are profits, they are returned to you, the Members. In 2009, your board of directors approved a capital credit refund of $5,040,015 bringing the total refunded over the years to more than $43.4 million.

Your refund represents your share of in margins that are being refunded from the years of 1983, 1984, 2007,and 2008. The amount of individual refunds is based on the amount of electricity used in these years.

Checks were mailed to all Members on December 14, 2009 who received service in those years unless the refund was for less than $10. Refunds of less than $10 appeared as a credit on their electric bill.

First Electric Cooperative is always there, reinvesting in our communities. That’s why in an electric cooperative, the people have the power.

The Cooperative Difference

First Electric Cooperative is a not-for-profit business. It charges a fair rate for electricity and uses the money to make sure there’s enough power for every Member. The revenue is used to maintain equipment, build lines and run the business. Anything that is left over is returned to the Members in the form of Capital Credits.

Capital Credits are the most important distinction between a cooperative and any other form of business. Members of the cooperative have a financial stake in the business. This is called Member Economic Participation and is one of the principles on which this business was founded. That is why it is so important that each and every person who receives electricity from First Electric understands that they are Members of the cooperative, not just consumers.

Capital Credits are assigned to each account and refunded when financial conditions permit. How much a member receives is based on how much electricity they used during the year or years that are being refunded.

If you have questions about capital credits, or would like more information, simply e-mail us or call at 1-800-489-7405.