Freeborn Mower Electric Cooperative (FMEC) is owned and controlled by the members who use its service. It also operates according to a not-for-profit business model. As a cooperative, any margin (revenue) remaining after all expenses have been paid, is returned to the members in proportion to their use of the cooperative's services, in the form of Capital Credits.
Each year, the cooperative's board of directors determines whether the cooperative's financial position will allow for the return, (retirement) of Capital Credits and if so, the amount of the retirment.
A member who terminates service with the cooperative, no longer receives additional Capital Credit allocations, however the balance in the member's account is maintained until it is retired in full. It is important to notify FMEC of any address change until your account is depleted. In the case of a member's death, Capital Credits become part of the deceased member's estate. Please contact our office for more information on Capital Credits.
Unclaimed Capital Credits
By law, we hold unclaimed Capital Credits for a period of seven years in order to allow people time to claim them. After that period of time, we release them to further student's higher education. If we did not use it for scholarship or non-profits, we would by statute, need to give the money to the State of Minnesota.
The Board of Directors approved the 2020 general retirement of $367,494 in Capital Credits in 2020. This retired the balance of unretired Capital Credits from 1997 and 63% of the unretired Capital Credits from 1998.