JACKSONVILLE, AR (News release) - The First Electric Cooperative Board of Directors has approved a refund of $6.5 million to members this year.
Any revenue that is not needed to maintain the cost of providing service is assigned back to each First Electric member in the form of capital credits.
Capital credit refunds are one of the major differences between a not-for-profit electric cooperative, such as First Electric, and an investor-owned electric company.
Capital credits are assigned to each account annually and refunded when financial conditions permit. How much members receive is based on how much electricity they used during the year or years that are being refunded.
This year's calculation represents a complete retirement of 1986 and a portion of all years thereafter through 2012.
Capital credit checks were mailed Dec. 10. Members whose refund was less than $20 received a credit on their December electric bill.
Throughout First Electric's 76-year history, more than $67 million has been refunded to members.
First Electric serves more than 88,000 active accounts throughout 17 counties in central and southeast Arkansas. The cooperative’s headquarters is located in Jacksonville with full-service offices in Benton, Heber Springs, Perryville and Stuttgart.
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