Florida Keys Electric Cooperative Association
Florida Keys Electric Cooperative Association
Florida Keys Electric Cooperative Association

Cooperatives & Capital Credit

Q&A | Capital Credit Forms | Return to Start/Connect Existing Service

As a not-for-profit utility, FKEC takes all the annual revenues it earns in excess of the cost of doing business (called margins) and allocates the money back to the members that contributed it. The allocations are divided in proportion to how much electricity each member purchased in that fiscal year. FKEC keeps track of the annual allocations in individual Capital Credits accounts for each member.

Last year, margins from 1997 along with 20% of the margins for 1998 were returned. This year, FKEC is refunding the remaining 80% of the allocations from 1998 to all individuals and businesses who were co-op members that year. The total refund amount will be approximately $3 million. If you were an FKEC member-consumer in 1998, you will receive either a refund check in the mail or a credit on your December electric bill.

The reason for the lag time in receiving returns is that FKEC, like most cooperatives, uses your investment for a number of years to improve and maintain the electrical system and to help keep our electric rates low.

All former and current FKEC members have capital credits, which have been or will be allocated to them. When a member discontinues service, they remain eligible for a future refund. To recieve future refunds it is crucial that you notify us of any address changes. Your cooperation in keeping us informed of your most recent address, whether you are a present or past member, will ensure that you receive the credits you have earned. Update Contact Information online or call 305-852-2431 or 800-858-8845.

Q&A: Capital Credits

Common questions about capital credits are answered below.

Q: What are CAPITAL CREDITS?

All revenues earned in excess of the cost of doing business (margins), are allocated back to our members based on the amount of revenue each individual member paid for the year. They are later returned to members as “Capital Credits.” Margins are retained by FKEC for a number of years to develop and improve the electric system and to help keep electric rates low.

Q: What YEAR are current refunds for?

Refunds are based on the amount of electricity each member purchased in the year being refunded. If you were an FKEC member-consumer in 1998 you will or have received either a refund check in the mail or a credit on your December 2016 bill.

Q: Why is there a delay in my return?

Initially it took FKEC several years to acquire enough reserve to refund members without having an adverse effect on operations. Like most cooperatives, FKEC uses your investment in lieu of borrowing funds from a lender to improve and maintain the electrical system and keep cost low.

Q: Why is my neighbor’s refund MORE than mine?

Refunds are based on the amount of electricity each member purchased in the year being refunded. If your neighbor purchased more electricity than you in the year being refunded, then his or her refund will be larger.

Q: Will I receive a check or a credit on my bill?

If you are due a refund you will recieve either a check or bill credit depending on the amount of your return. FKEC's current refund policy is as follows: If you have an active account and are due a refund less than $100, you have received a credit on your December 2016 electric bill. If your capital credit refund is $100 or more, you will receive a check. Checks are valid for 90 days.

Q: Why didn't I get a check?

Because margins are retained for a number of years before being returned, you had to be a member in the refund year to get a credit this year. In 2016 refunds were returned to those who were members in 1998. It is important that members moving away from the area keep a current address on file with FKEC in order to receive refunds in the future. You can update contact information online or call 305-852-2431 or 800-858-8845.

Q: My name has changed, what should I do?

If your name has changed, contact FKEC to change the name(s) on the account. We will begin to reissue checks in May.

Q: The member is deceased, what should I do?

Download a Transfer Capital Credits of Deceased Members application or contact FKEC for a copy. Once complete, it will be reviewed by our attorney and a check reissued based on his instructions.

Q: Do you have forms available online?

Capital Credits transfer forms currently available online:

* Application to Transfer Capital Credits of Deceased Members (5 pages)

* Affidavit of Transfer of Capital Credits for Active Corporations (2 pages)

* Affidavit of Transfer of Capital Credits for Dissolved Corporations (2 pages)

Q: I have more questions. Who should I talk to?

Contact a Member Service Representative at 305-852-2431. You can also email member.service@fkec.com

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Florida Keys Electric Cooperative Association
Florida Keys Electric Cooperative Association