Capital Credits

Did you know cooperatives like Fannin Electric give cash back to their members over time? It’s one of the many benefits of being served by a not-for-profit utility. We do not generate profits for a group of investors; any profit we make is returned to current and past members as Capital Credits.

What are Capital Credits?

At the end of each year when it’s determined how much revenue exceeds total expenses, the difference is assigned to members as Capital Credits based on the amount each member was billed for electricity during the year. This is called a Capital Credits allocation.

Capital Credits Process

When you establish service with Fannin you become a member.

Fannin tracks how much energy you purchase from the co-op

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In years that Fannin earns positive margins, you are allocated your portion based on services used.

Fannin keeps note of the allocation in your account and invests it back in the co-op.

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Over time your allocation is used to fund capital needs such as equipment and inventory

Yearly, Fannin evaluates the co-op’s financial condition to determine if Capital Credits can be retired.

How are Capital Credits Divided?

Capital Credits are allocated to members every year. Think about it like a pie:

When Do I See My Share?

The co-op does not return the total allocation amount to our members immediately.
We must keep some funds on hand for operating expenses and co-op needs, like equipment maintenance and repairs from storm damage.
We also save funds to address unexpected emergencies.
The member-elected Board of Directors evaluates the financial needs of the co-op every year and determines how much of the pie for a given (past) year can be returned to members.

How Are Capital Credits Distributed?

Capital Credit retirements, or refunds, are typically distributed in December.

Current Fannin Electric members receive a credit on their electric bill. Issuing credits instead of mailing payments helps the co-op reduce expenses such as check printing, envelopes, postage, bank fees, etc.

Former members are mailed a check to their latest address on file. This is why it’s important to let us know your address when you move.

Keep your contact information up to date to ensure you get your piece of the pie. Capital Credits are yours to keep; any allocation you receive will be returned to you.

Unclaimed Capital Credits

Members or former members listed have been issued a capital credit check that was returned to the cooperative. Type a name or part of a name below to search the unclaimed funds list. If your name appears on the list, you may be eligible for a refund.

    Are Capital Credits Payable After Death?

    Yes. Capital Credits on a member’s account belong to the member’s estate through the year of death. Heirs can request a Capital Credits estate retirement by providing official documentation to the co-op. For more information, call (800) 695-9020.

    Questions?

    Contact us or call (800) 695-9020 to learn more about our capital credits process or to provide an address for an individual on the unclaimed list.