Patronage dividends represent your ownership in East-Central Iowa REC. At the end of each year, your Cooperative totals revenues and subtracts expenses. The remainder (called margins) is allocated to one of three funds:
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A contingency fund that is used to offset unforeseen losses such as repairing lines damaged in a major storm.
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A surplus account that is required by Iowa law.
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A revolving fund, which is the subject of this brochure. Also known as allocated patronage dividends, funds in this account are allocated to the individual accounts of members who purchase electricity from East-Central Iowa REC during a given year.
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Because capital credits may not be retired for several years, it is important that you keep the Cooperative informed of your current address.
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Unclaimed capital credits go into a Community Reinvestment Fund used for educational purposes.