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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 providing a share of our capital, you’re building equity in the co-op, and the Capital Credit Member Bonus is your return on that investment. Learn more about how it works by clicking the accordion arrows below, and contact us if you have questions.

Your investment in power.

Paying your electric bill isn’t just payment for service—it’s an investment. One of the many benefits of being a member of Farmers EC is receiving a Capital Credit Member Bonus check as a return on your investment, much like a dividend on stocks. As a member, you build equity in the cooperative each year you receive service.

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 Credit Member Bonus checks,” said Mark Stubbs, General Manager. “It clearly demonstrates our commitment to our members.”

Three Steps to Capital Credit Member Bonus Refunds

Step 1: When you sign up for electric service with Farmers and pay your membership fee, you become a member of the cooperative. As you purchase electricity from the cooperative, you build equity in it.

Step 2: Each year, Farmers EC designates a portion of what you pay in purchases to your Capital Credit 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 Credit retirements with their tax advisers.

Contact Information Update Form

Moving? Make sure your money can find you! Submit the Contact Update Form below so Farmers EC can continue to refund any money you are eligible to receive.