At its May Board meeting the ECI REC Board of Directors approved retirement of $523,441 of its 1997 and 1998 margins to member-consumers of the Cooperative. 5,575 member-accounts that had received electricity from East-Central Iowa REC in 1997 and 1998 should receive money back this month. These dollars going back to ECI REC member-accounts represent your share of the deferred patronage dividends (profits) that the Cooperative earned in 1997 and 1998. Within the past 10 years, ECI REC has returned $ 5,539,282 to its members.
Fifty-five percent (3,105) of the 5,575 member-accounts receiving money back are active accounts currently receiving electricity from ECI REC. These active member-accounts will see a credit on their bill – this is over 55% of the cooperative’s active accounts that will receive a credit on their June bill. The remaining member-accounts that are no longer active (not receiving electricity from ECI REC) will receive their credits in the form of a check that will be placed into the mail.
If you do not receive a credit on your June bill, you did not receive electric service from ECI REC in 1997 or 1998. Email the Urbana office at firstname.lastname@example.org or call 877-850-4343 if you have any questions.
Since ECI REC is a nonprofit organization, members pay for their electricity at cost, and any margins left over at the end of the year after all expenses are covered are allocated in the form of patronage dividends. These margins include not only operating margins (generated directly by the sale of electricity to you), but also “non-operating” margins (interest from our investment of spare cash and patronage dividend allocations received by ECI REC as a member of other cooperatives from which it purchases goods and services).
As owners of the Cooperative, members provide equity by allowing ECI REC to hold on to these margins for a certain length of time. They are used to finance operations and system improvements, to cover the cost of maintaining the electric distribution system, and more. Your June bill will show a credit that reflects the allocations from these operating margins.