Farmers Electric Cooperative this month mailed nearly $959,000 of capital credit checks to members of the cooperative.
This is the 25th consecutive year Farmers Electric has returned profits to its members.
Members are allocated a portion of the cooperative’s profits each year based upon a member’s contribution to total revenue. The allocations are not cash but notification of what members will receive 20 or more years later when the board of directors approves retirement of capital credits.
During the period between allocation and retirement, margins are used as operating capital for line construction, maintenance, storm repairs, and to allow the cooperative to reduce interest costs related to borrowing money.