NFEC retires capital credits

   During their April meeting, the Northfork Electric Cooperative Board of Trustees approved a general retirement of capital credits that were allocated to members in 1986.

What does that mean?

   Unlike investor-owned utility companies that strive to generate profits for shareholders, electric cooperatives like NFEC operate on an at-cost basis. Any dollars left over after expenses – referred to as margins – are returned to the consumer-members. Capital credits represent these dividends.

   Capital credits are calculated each year in which NFEC makes a margin and allocated to each member in proportion to his/her total patronage for that year. NFEC retains and uses capital credits for operating capital until the financial condition of the cooperative (as determined by its bankers, RUS and NRUCFC, and the board of trustees), permits the co-op to issue a refund.  

   Because NFEC operates on a very tight budget to keep rates as low as possible, there is normally very little cash available year-to-year to pay, or retire, a significant amount of these accumulated credits.

   The amount of the return to the members totals $268,536 and represents 100% of the capital credits allocated to NFEC members in 1986.  The refund amounts are based on a pro-rated amount of patronage paid by each member during those years. 

   Members with multiple accounts will receive one check that reflects the total accumulated capital credits from all their accounts.  Former NFEC members will be sent a check for their refund.  That is why it is so important for us to have your current mailing address if you should move off of NFEC lines.

   Anyone who is an heir to a deceased member’s estate needs to complete and submit a Certification of Entitlement form, as well as present a copy of the death certificate, and will or letters of testimony.  The form can be found on our website at www.nfecoop.com on the Patronage Capital Credits page found under the About Us tab.

   If you have any questions about your capital credits, please call our office at 580-928-3366 and speak with Tawny Keith, Manager of Office Services.