A return on your investment.
Here’s another way to look at the power of your co-op membership: Every electricity purchase is actually an investment in the organization. As a member-owner providing a share of our capital, you’re building equity in the co-op, and the Capital Credits Member Bonus are your return on that investment. Learn more about how it works here, and contact us if you have questions.
Capital Credit Member Bonuses coming soon!
If a member’s bonus is greater than $60, it will arrive as a check around Thanksgiving. If a member’s bonus is less than $60, it will appear as credit on your account.
Your investment in power.
Member equity—your money—is the essential tool Farmers EC uses to build, maintain, and upgrade the facilities necessary to provide you the reliable, low-cost electric service you expect. Farmers EC is a not-for profit electric cooperative, so any money left over after paying for all operating costs is returned to our members.
“On behalf of the Farmers Electric Cooperative Board of Directors, it’s a privilege for Farmers EC to issue Capital Credits Member Bonus checks,” said Mark Stubbs, General Manager. “It clearly demonstrates our commitment to our members.”
Three Steps to Capital Credits Member Bonus Refunds
Step 2: Each year, Farmers EC designates a portion of what you pay in purchases to your Capital Credits Member Bonus account. This is called an allocation. The amount of the allocation is determined by using a multiplying factor that is common to all members. This ensures each member’s allocation is a fair and equitable percentage.
Step 3: Capital Credit Member Bonuses are “retired” (paid) at the discretion of the Board of Directors, and as the financial conditions of the cooperative allow. Our goal is to return your allocation to you on a reasonable and systematic basis, once the board determines the cooperative has met its financial requirements.
Note: If you move, make sure to give your new address to Farmers so we can continue to refund any monies you are eligible to receive.
Non-taxable Income: Capital Credit Member Bonuses are a return of money paid for electricity in a previous year and are generally not taxable income for residential consumers. Commercial and industrial consumers should discuss any Capital-Credits retirements with their tax advisers.
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