Firelands Electric Cooperative is a non-profit corporation owned by its members. Revenue generated throughout the year is used to cover the cooperative's cost of power, construction loans, building new services, maintaining existing lines and other costs associated with the distribution of power and maintaining services. Any money left over at the end of the year is considered margins. These margins are allocated and credited to each member as patronage capital credits and based upon the member’s purchases, or patronage, with the cooperative.
The return of patronage capital credits is just one of the many ways that electric cooperatives are set apart from other utility providers. One of the seven cooperative principles is to operate on a not-for-profit basis by returning any net savings to members on the basis of patronage. Funds remaining each year after all obligations have been paid are credited to members’ capital credits accounts and represent each member’s ownership of the cooperative.
Since 1948, Firelands Electric Cooperative has refunded over $11.7 million in capital credits. Refunds to current members are issued as credits on members' bills rather than issued as checks. Applying capital credit refunds to members' monthly electric bills is a more efficient way of refunding capital credits because it saves on postage and printing costs.
Click here for helpful FAQs about capital credits and how they are allocated.
Firelands Electric operates in accordance with seven Cooperative Principles. If you would like to obtain additional information regarding capital credits, contact us here or call 1-800-533-8658.