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

Cooperatives & Capital Credit

Q&A | Capital Credit Forms

The holidays are upon us, and this also means it is once again time for FKEC to return Member Capital Credits with your December electric bills. 

As a not-for-profit utility, FKEC calculates our annual margins by taking the total revenue and subtracting all operating costs. The resulting margins are then allocated to each member based on their patronage, which is the amount of electricity he or she purchased during that year in proportion to the total amount purchased by all members. Once these margins are allocated they are called Member Capital Credits.

This December, FKEC will be returning 100% of the Member Capital Credits from 1999.  If you were a FKEC member in 1999, you will receive either a refund check in the mail, or a bill credit on your December electric bill. The total refund amount is $1,733,557.

If you have an active account and are due a refund less than $100, you will receive a credit on your December 2017 electric bill. If your Capital Credit refund is $100 or more, you will receive a check. Capital Credit checks less than $20 will only be mailed to former members if it's the final balance pay-out. Checks are valid for 90 days.

Like other electric cooperatives, FKEC retains its Member Capital Credits for a number of years to invest in improvements and maintain the electric system. This also helps to limit the amount of money the Cooperative borrows, which in turn helps lower the rates on your electric bill.

If you move out of FKEC’s service territory or are no longer an active member, it is your responsibility to keep FKEC informed of your current mailing address. This enables us to properly forward your payment to you when Member Capital Credits are refunded for the year or years of your membership.
           

Q&A: Capital Credits

Common questions about capital credits are answered below.

Q: What are CAPITAL CREDITS?

Each year, FKEC calculates our annual margins by taking our total revenue and subtracting all operating costs. The resulting margins are then allocated to each member based on their patronage, which is the amount of electricity he or she purchased during that year in proportion to the total amount purchased by all members. Once the margins are allocated to each current member for that year, they are then called Member Capital Credits

Q: What YEAR are current refunds for?

This year's refunds represent the margins that were allocated to our members from 1999. If you were an FKEC member in that year you will receive either a refund check in the mail or a credit on your December bill. Capital credit checks for less than $20 will only be mailed to former members if it’s the final balance pay-out. Checks are valid for 90 days.

Q: Why is there a delay in my return?

Like other electric cooperatives, FKEC retains its Member Capital Credits for a number of years to invest in improvements and maintain the electric system. This also helps to limit the amount of money the Cooperative borrows, which in turn helps lower the rates on your electric bill.

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

If your neighbor purchased more electricity than you in 1999, his or her refund will be larger.

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

If you have an active account and are due a refund less than $100, you will receive a credit on your December 2017 electric bill. If your Member Capital Credit refund is $100 or more, you will receive a check. Capital Credit checks less than $20 will only be mailed to former members if it's the final balance pay-out.

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

Contact FKEC to change the name(s) on the account. We will begin to reissue new checks in May 2018.

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

Download the Deceased Member Affidavit 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:

* Deceased Member Affidavit (2 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