What are capital credits?
FEM Electric is an electric cooperative, owned by the members we serve. As a not-for-profit entity, any revenues remaining over and above the cost of doing business are considered as margins or "capital credits." When FEM Electric's board of directors deems it appropriate, capital credits are then returned to you, our member/owners.


How do I participate in capital credit refunds?
Your membership with FEM Electric activates your capital credit account and no additional action on your part is required.  Capital credits are calculated for every member who purchased electricity during a year in which the cooperative earned margins. 


Will I receive a yearly notification of capital credits earned?
Yes. Information concerning that notification will sent to the members in the form of an allocation notice.  


How are capital credit refunds calculated?
The amount of capital credits you earn in a given year is based upon the amount of electricity purchased.  Each member receives a credit based on a percentage for each dollar of electricity purchased. 


Will I receive a capital credit refund each year?
Not necessarily.  The FEM Electric's Board of Directors will analyze the financial health of the cooperative and will not authorize a refund if it is not in the best interest of the membership.


How and when will I receive my refund?
When a capital credit retirement is approved, depending on the amount of your individual refund, you will receive a credit on your billing statement in the month selected for the refund. If you no longer have an active billing account,  you will be mailed a check.


What happens to my capital credit refund if I am no longer a FEM Electric member?
Your capital credits remain in your name until they are retired and it is important that you ensure FEM Electric has your current address so that a check can be mailed to you.


What happens to the capital credits when the member is deceased?
Upon the death of a member, capital credits are refunded to that member's estate.