Flint Energies to Refund 1982 and 1983 Capital Credits

08/11/10

REYNOLDS/WARNER ROBINS/PERRY/UPATOI - Flint Energies’ Board of Directors has authorized the distribution of $2.0 million in capital credits to members of the Cooperative who purchased power from Flint in 1982 and/or 1983, according to Chief Executive Officer Bob Ray. The refund will completely refund the 1982 capital credits and will refund a portion of 1983.

“Roughly 12,600 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.

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. Just over 5,100 checks will be mailed to those who were members of Flint in 1982 or 1983, 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 sets its 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, we subtract 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 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) Your capital credits are reserved for you even if you move out of the Flint service area. Flint will make a diligent effort to send you a check by mail. Please keep us informed of your forwarding address.

(2) If your check is not cashed or is returned by mail, your name will be published as we try to find your new address. To claim a check you must provide proper identification.

(3) To help yourself in future years, keep Flint Energies informed of address changes. You may receive checks over several years.

(4) When you call for a new electric service, tell us if you've been a member before. That helps keep 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 240 employees and serves more than 250,000 Georgians through 82,600 meters. Flint's physical plant consists of more than 6,250 miles of distribution line and 49 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.

Seven Principles Distinguish Co-ops from Other Electric Suppliers

Voluntary and Open Membership

Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

Democratic Member Control

Cooperatives are democratic organizations controlled by their members who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner.

Member Economic Participation

Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. The members usually receive limited compensation, if any, on capital subscribed as a condition of membership. 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.

Autonomy and Independence

Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.

Education, Training and Information

Cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperatives. They inform the general public—particularly young people and opinion leaders—about the nature and benefits of cooperation.

Cooperation Among Cooperatives

Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, regional, national and international structures.

Concern for Community

While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.

Flint News

Flint Energies to Refund 1982 and 1983 Capital Credits