Message From the CEO

East-Central Iowa REC is distinctly different from the state’s investor-owned utilities (IOUs). How? It’s down to the unique cooperative business structure. IOUs are capitalized, owned, and directed by investors (their stockholders). In contrast, cooperatives are created, owned, and directed by their members.

Local member control has many advantages. First and foremost, it allows cooperatives to make decisions that are in the best interests of the members they serve. ECI REC and other electric cooperatives operate on a not-for-profit basis. We provide service at the cost of operations, which allows us to focus on efficiency and the quality of our service. IOUs, on the other hand, must focus on profits because their stockholders demand a return on their investment, and they often are not customers of the IOU.

Of course, electric cooperatives are subject to working within a limited number of state and federal guidelines. But the state’s IOUs are regulated by the Iowa Utilities Board and by the Federal Energy Regulatory Commission in Washington, D.C. This oversight exists to balance the significantly different interests of the IOUs’ stockholders and their customers.

Because of local member control, decisions about ECI REC are made by people who live in the community, not by bureaucrats in Des Moines or D.C. As a member of ECI REC, you share ownership in our system and have a voice in our operations.

You also elect the Board of Directors during the Annual Meeting. The Board is responsible for setting rates, developing policies, and devising procedures for running ECI REC daily and in the long-term. Directors are elected based on their knowledge of (and interest in) ECI REC, their reputation for sound judgment, and their leadership skills. They are local leaders who know their area and the people who live in it. They are responsive to the opinions of their neighbors and strive to provide them with reliable electric service at reasonable rates.

ECI REC supports many events and activities that impact the 11 counties we serve. Here are a few examples:

• We participate in the annual Youth Tour, sponsoring two local high school juniors to travel to the nation’s capital, meet with lawmakers, and learn firsthand how our democracy works.
• We have a scholarship program, offering twelve $1,000 scholarships.
• Our RECare program distributes funds via community action agencies to low-income energy consumers in Benton and Buchanan Counties.
• We work closely with our local schools to provide safety demonstrations and participate in career fairs.
• We support local businesses. Many participate in the Co-op Connections^® program. Qualifying businesses who are expanding or upgrading equipment may also apply for a loan through our Revolving Loan Fund.

Local ownership and member control make ECI REC much more responsive to the needs of our members. We are proud to be actively involved in enhancing the quality of life where you live, work, and play. We value your participation in our Annual Meeting and hope to see you there on June 16. We also hope you will consider running for the Board of Directors or nominating a candidate. If you’re interested in learning more about the Board of Directors, visit https://ecirec.coop/democratic-governance.