September 2010

Capital Credits: FKEC Refunds 1992 Margins

The difference between Florida Keys Electric Cooperative and an investor-owned utility is that FKEC is owned by you, the member. As a member-owner, you invest in your electric utility monthly by paying your electric bill. FKEC then issues its members a return on this investment in the form of Capital Credits.

This “return” is the revenue FKEC earns in excess of its expenses (called margins). This year FKEC is refunding 100% of the margins from 1992 to all individuals and businesses who were cooperative members in 1992. If you were an FKEC member-consumer in 1992 you will receive either a refund check or a credit on your bill.

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

Under the cooperative principle of “Member’s Economic Participation” all members contribute equitably to the capital of their cooperative through their monthly electric bills. So following this principle, each member’s refund amount varies in proportion to how much he or she paid in through monthly electric bills in 1992.

If you move away from FKEC’s service territory, please inform us of your current address. This will enable us to forward payment when the capital credits are refunded for the year or years of your membership.

Electric co-ops nationwide retire more than $500 million in capital credits every year and return that money to the Americans they serve.

For Common Questions & Answers about Capital Credits, click here.

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