What are Capital Credits?

Federated is a cooperative that operates on a not-for-profit basis. All profits (margins) are returned to the members in the form of "capital credits." These margins are used up to 20 years to help Federated build powerlines and facilities to maintain a reliable system while keeping rates as low as possible. If all margins were returned immediately, outside financing and rate increases would regularly occur to keep the cooperative financially solvent.

When do I receive my capital credits?

Federated's Board of Directors determines the payment of capital credits. Under their policy a combination of last year's and prior years' margins are returned. Active members receive their capital credits as credits on their November electric bill.

What if I move off Federated's lines?

If you ever move, inform the cooperative about any address changes so you will receive your capital credit checks when they are mailed.

What happens to my capital credits after I die?

In the event a member who has capital credits assigned to them dies, the heirs may request to receive the discounted amount of these credits upon board approval. Otherwise, the heirs may assign them to an individual and receive them as the capital credits are routinely paid back to the membership.

How much has Federated returned to members?

Federated Rural Electric has returned approximately $7.9 million in capital credits during the last decade.

Where can I get the proper capital credits forms?

Click on the appropriate form below. Print it out; fill it out; and send it in.

Request for Information Concerning Deceased Member
Affidavit for Collection
Assignment of Federated Capital Credits
Designation of Membership Type
Assignment of Membership Number & Capital Credits With Witness Signature

Unclaimed Capital Credits

Federated Rural Electric requests that former members keep us up-to-date with their current address. If we attempt to send you a capital credit check and it is returned due to an outdated address, we follow state laws for the unclaimed property. We will publish the information on our website in an attempt to find the rightful owner of the money.

We continue to publish and carry unclaimed capital credits amounts on our books for up to seven years. If we still have not located you, the law requires us to turn the money over to the state or donate it to a charitable organization.

Our current policy is to donate all unclaimed capital credits money to the Federated Rural Electric Trust for distribution as student scholarships and for charitable causes approved by the Trust Board.

Annually we print our most recent unclaimed capital credit retirements in Connections. The listing for the past seven years is now available at the link below.

If you know someone on the list, please have that individual email or call 507-847-3520 or 800-321-3520, extension 2233.

Click here for a 2024 list of missing members...