FMCS Donates to SEMCAC’s “Reach Out For Warmth”

For Immediate Release January 1, 2013

For more information contact:
Mary J. Nelson, Communicator
507-373-6421 Ext. 3118

FMCS Donates to SEMCAC’s “Reach Out For Warmth”

Freeborn-Mower Cooperative Services (FMCS) recently donated $6,000 to SEMCAC’s “Reach Out For Warmth” (ROFW) program. The ROFW fuel fund was established by Minnesota Statute and is administered by SEMCAC. Donations made by Freeborn-Mower Cooperative Services will provide assistance to FMCS members to pay their electric bill.

Freeborn-Mower Cooperative Services is a locally owned electric cooperative. Funds donated to ROFW are possible because of unclaimed Capital Credits. Capital Credits represent the return, or retirement, of margins (what would be called profit in other forms of business) to the cooperative’s member-owners. FMCS is in its 46th year of retiring Capital Credits to cooperative members. The 2012 Capital Credit disbursement was $500,000 bringing the cumulative total to over $16.2 million. Occasionally, there are former members of the cooperative for whom the cooperative lacks a current address. Since Capital Credits cannot be returned to these members, the funds are treated as unclaimed property in accordance with state law. As such, the unclaimed Capital Credits must either be forfeited to the state or may be directed for use in some type of charitable purpose. The FMCS Board of Directors has determined that the money will be donated for use as local scholarships within the communities from which it was generated.

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