First Electric Returns Capital Credits to Members

Giving credit where credit is due — capital credits, that is! Member-owned — that’s what First Electric is! As a member, YOU own a portion of this cooperative, which means you benefit from the excess revenue in the form of capital credits each year. That’s what sets electric cooperatives apart from investor-owned utilities. Since First Electric operates at cost, any surplus is allocated back to members as capital credits.

We have been doing this since the 1940s, returning more than $146.3 million. This month's distribution of capital credits will increase that amount.

So, How Do Capital Credits Work?

Members use electricity provided by the co-op, and their usage and payments are tracked each year. Those payments are used within the cooperative. Anything left over after fulfilling financial obligations is referred to as margins. These margins are allocated back to you — the member — in proportion to the amount of electricity you purchased. The First Electric Board of Directors reviews the co-op’s financial position each year and determines the amount of capital credits to refund.

Who Receives a Capital Credit Refund?

When the Board of Directors reviews the financial position, they look at margins from multiple years. The retirement year determines who will receive a capital credit refund; any person who was an active member during those years may receive a refund, even if they are no longer a member. Again, the refund amount would be based on a percentage of the member’s total accumulated capital credit balance. Members with a refund of more than $50 will receive a check, while those with a refund of less than $50 will receive a bill credit.