Despite the fact that more than one in every ten Americans is served by an electric cooperative, many members are still confused by Capital Credits and why they receive them.
As a not-for-profit cooperative utility, Florida Keys Electric Cooperative allocates its margins -- the revenues earned in excess of the cost of doing business -- to its members. Margins are retained by FKEC for a number of years to improve the electric system. These margins are then returned to members as "Capital Credits."
Refunds are based on the amount of electricity each member purchased in the year being refunded, so refund amounts vary in proportion to the amount of electricity each member used in that year. FKEC is currently returning capital credit accounts from approximately 18 years ago (1990 funds were returned in 2008).
Common questions about capital credits are answered below.
Q: Why did I receive a Capital Credit check from FKEC?
A: As noted above, FKEC is a not-for-profit utility, which means it allocates all revenues earned in excess of the cost of doing business (called "margins") to the consumers it serves. Each consumer has an individual "Capital Credits Account" with FKEC, and the dollar amount allocated to each account is based on the amount of electricity each individual member purchased for the year. Margins are retained by FKEC for a specified number of years to improve the electric system. The margins are then returned to members as Capital Credits checks. Active members due less than $20 will instead receive bill credits.
Q: Why does FKEC give back profits to its members when other utilities don't?
A: Although cooperative utilities provide power to homes and businesses in the same way as other types of electric utilities, cooperatives are owned by consumers (not private investors or the government). All cooperatives are also guided by seven principles that reflect the best interests of those consumers. One of the seven principles is "Members' Economic Participation," which means that all members contribute equitably to the capital of their cooperative.
Q: Why are the checks for all different amounts? Shouldn't we all get a fair share?
A: Individual refunds amounts are fair, because they are based on the percentage of revenue each member contributed in the year being refunded. So the refund amounts vary in proportion to the amount of electricity used by each member in that year.
|
Q: Why didn't I get a check?
A: Because margins are retained for a specified number of years before being returned, you had to be a member in the refund year to get a check this year. 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 because FKEC retains the funds for approximately 18 years before returning them.
Q: Is this interest on my deposit?
A: No. Although the deposit on your electric account does collect interest, it is held in a completely separate account from your Capital Credit account.
Q: My name has changed, what should I do?
A: If your name has changed, contact either FKEC office to change the name(s) on the account. We will begin to reissue checks in January.
Q: The member is deceased, what should I do?
A: Contact FKEC for an application. Once complete, it will be reviewed by our attorney and a check reissued based on his instructions.
Q: Do you have forms available online?
A: Capital Credits transfer forms currently available online:
* Application to Transfer Capital Credits of Deceased Members (4 pages)
* Affidavit of Transfer of Capital Credits for Active Corporations (2 pages)
* Affidavit of Transfer of Capital Credits for Dissolved Corporations (2 pages)
NOTE: You must have the free Adobe Acrobat Reader installed on your computer to view these files.
Q: I have more questions. Who should I talk to?
A: Contact the Tavernier office (305-852-2431) and ask for Member Service. You can also email member.service@fkec.com |
