As a Member of First Electric, YOU Get the Credit!
Posted on December 1st, 2020
First Electric Cooperative is not like other utility companies. You, as a member own a portion of the business. And, one of the benefits of your membership involves the allocation of excess revenue, called capital credits.
First Electric is retiring $9,566,931 in 2020. That brings the total returned to members to more than $124.3 million since First Electric began the practice in the 1940s.
First Electric operates at cost and when money is left over, it’s allocated back to you as a capital credit. When the co-op’s financial position permits, the co-op retires, or pays, the capital credits by check for amounts over $30 and by bill credit if less than $30.
“Allocating and retiring excess revenue to members helps distinguish cooperatives,” President/CEO Don Crabbe said. “We’re proud to support our communities by putting money back into the local economy — and into the pockets of those we serve. It makes our business model special.”
Revenue collected that is not needed to cover the cost of providing service is allocated back to members based on the amount of electricity they used during the year.
The First Electric Board of Directors reviews the co-op’s financial position each year and determines the amount of capital credits to refund. The amount of money members receive is based on how much electricity they used during the year or years that are being refunded.
Members of the cooperative have a financial stake in the business. This is called member economic participation and is one of the seven principles on which this co-op was founded. It is important that every person who receives electricity from First Electric understands that they are member-owners of the cooperative, not just consumers.
“It’s time for our members who helped build this cooperative to get the credit... through capital credits,” Crabbe said.
Help Support Operation Round-Up
Those who wish to donate their capital credit refund check to Operation Round-Up may endorse the check and bring it to any First Electric office or mail it to First Electric Cooperative, P.O. Box 5018, Jacksonville, AR 72078.