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Flint Energies Plans Capital Credits for September | Business

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Flint Energies Plans Capital Credits for September

Flint Energies’ Board of Directors has authorized the distribution of $2.38 million in capital credits to members of the Cooperative who purchased power from Flint in 1983 and/or 1984, according to Chief Executive Officer Bob Ray. The distribution will completely refund the 1983 capital credits and will refund a portion of 1984.

“Roughly 12,900 currently active members will receive a bill credit on their primary electric account in September for the amount of their capital credit refund,” said Ray. “This tradition continues our effort to look after our members’ best interests.”

By paying capital credits refunds in September, Flint hopes to help offset the higher light bills that many members see at this time of year.  Around Sept. 15, about 17,700 checks will be mailed to those who were members of Flint in 1983 or 1984, but no longer get their electric service from the cooperative.

What are capital credits and how are they paid?

Member-owned, not-for-profit electric utilities like Flint set rates to bring in enough money to pay operating costs, make payments on any loans and provide an emergency reserve. At the end of each calendar year, the cooperative subtracts operating expenses from the total amount of money collected during the year and this balance is the called “margin.” This margin is allocated back to each member that year in proportion to their purchases.

Then on an annual basis, the Flint Energies Board of Directors makes an independent decision on the financial condition of the cooperative. When the cooperative is strong enough financially and the member equity level is high enough, the Board directs the staff to refund some portion of past year’s capital credits.

Prior to refunding capital credits, Flint uses member equity in place of commercial loans to help construct the Cooperative's physical plant (poles, wires, transformers, etc.).

Capital credits are somewhat similar to the dividends paid to shareholders of investor-owned utilities except the cooperative’s “shareholders” are also the members that it serves and the “dividends” (capital credits) are distributed Flint’s member-owners.

“The process of member capital credits fulfills the third cooperative principle of ‘Member Economic Participation’,” said Ray. “That principle states: Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.”

 

Capital Credits Tips from Flint Energies

(1)        Capital credits are reserved for each member even if they move out of the Flint service area. Flint will make a diligent effort to send a check by mail. Members are asked to keep Flint informed of forwarding addresses.

(2)        If a check is not cashed or is returned by mail, Flint will publish names and attempt to find member addresses. To claim a check, members must provide proper identification. Check here for claims: http://www.flintenergies.com/aboutUs/unclaimedFunds/unclaimedCapitalCredits.aspx

(3)        Keep Flint Energies informed of address changes, as members may receive checks over several years.

(4)        When members call for a new electric service, they are asked if they have been a member before to help keep capital credit distribution records current.

 

Incorporated in 1937, Flint Energies is a not-for-profit member-owned electric cooperative that provides energy services to residential, commercial, industrial and agricultural members in parts of 17 central Georgia counties. Flint has 236 employees and serves more than 250,000 Georgians through 84,200 meters. Flint's physical plant consists of more than 6,250 miles of distribution line and 50 substations located within Bibb, Chattahoochee, Crawford, Dooly, Harris, Houston, Macon, Marion, Monroe, Muscogee, Peach, Schley, Sumter, Taylor, Talbot, Twiggs and Upson Counties. The system also includes the Museum of Aviation at Robins Air Force Base and the Fort Benning military post. Flint is the eighth largest of Georgia's 42 EMCs and the 38th largest of the nation's nearly 1,000 rural electric cooperatives.

Flint Energies is also a Touchstone Energy Cooperative, part of a nationwide family of electric cooperatives exhibiting the core values of integrity, accountability, innovation and commitment to community. Flint’s members give their cooperative an American Customer Satisfaction Index (ACSI) score of 80, which rates higher than most investor-owned utilities in the country. 

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