Approximately $3 million dollars will be returned to many Flathead Electric Cooperative members via bill credits and checks in November and December.
Approximately $3 million dollars will be returned to many Flathead Electric Cooperative members via bill credits and checks in November and December. The Co-op’s Board of Trustees unanimously approved the retirement of $3 million of capital credits allocated to member accounts in 2008 and 2009. If you were a member in 2008 and/or 2009 and you are a member now, you will receive a credit on your bill between November 20 and December 15. If you are no longer a member, you will receive a check in December.
Board President Gary Boe remarked, “With the price of everything else increasing, your Co-op is proud to keep electricity prices as low as possible and to return excess revenue to members at appropriate times. Returning members’ capital credits is the right thing to do, and it’s the not-for-profit cooperative way.”
Instead of focusing on profits, not-for-profit co-ops focus on serving low-cost, reliable electricity to members while providing value to the community. When revenues exceed expenses, co-ops allocate those margins back to members as capital credits. Co-ops hold onto capital credits for a period of time to fund long-term improvements to the electric system and to purchase supplies and equipment like transformers and bucket trucks. Essentially, the co-op borrows from itself and avoids paying interest on bank loans, which keeps electric rates lower. When the financial condition permits, capital credits are retired and paid to members as capital credit payments. Typically, capital credits are returned to members after several years.
To learn more, or to search for your unclaimed capital credits, visit What Are Capital Credits – Flathead Electric Cooperative