What is a Cooperative?

• The North Haven and Vinalhaven communities created Fox Islands Electric Cooperative (FIEC) in 1975 -- making 2025 our 50th anniversary!

• FIEC is a rural electrification cooperative that is a federal tax-exempt 501(c)(12) nonprofit.

• Electric cooperatives were started in 1936 when Congress passed the Rural Electrification Act, which was part of President Franklin D. Roosevelt’s New Deal.

• Cooperatives were formed to bring electricity to rural America with low-cost federal loans.

• Customers who purchase electricity from FIEC are “members” of FIEC and owners of FIEC.

• Members invest in FIEC by providing capital equity in the business when they purchase electricity.

• The difference between the cost of running the business and the revenue FIEC collects through bills is called a margin – the margin is allocated to each member in FIEC’s records based on their electric use. It is then reinvested in FIEC’s business.

• The allocated margins are called “capital credits,” which are returned to FIEC’s customers after about 35 years of investment.

• FIEC needs capital credit equity to continue its business for the benefit of its members. FIEC has no shareholders who profit from FIEC’s business.

• FIEC is owned and managed by its members through a democratically-elected board of directors – members vote to elect three directors every July.

• The FIEC board meets monthly – all meetings are open to FIEC’s members to attend in person or online.