Message From the CEO
Rural electric cooperatives like ECI REC play a unique and vital role in the delivery of electric power across the United States, particularly in remote and underserved areas. Unlike investor-owned or municipal utilities, electric cooperatives are built on a foundation of member ownership, democratic governance, and community commitment.
Our mission extends beyond simply supplying electricity—we aim to empower the communities we serve through local control, reinvestment, and a not-for-profit structure. The following points highlight the key features that distinguish ECI REC and other electric cooperatives from other types of electric utilities.
Ownership and Governance
Unlike investor-owned utilities (IOUs), which are controlled by stockholders, and public utilities, which are government-run, cooperatives like ECI REC are guided by the people they serve—you.
- Electric cooperatives are member-owned organizations, meaning the customers who receive electricity are also the cooperative’s owners.
- Members elect a Board of Directors from among themselves to make decisions and oversee operations.
Nonprofit Status and Allocation of Members’ Share of the Margins
With a cooperative like ECI REC, any revenue that exceeds the cost of service is returned to members as a deferred patronage dividend—also called patronage dividends.
- When you pay your electric bill, you’re helping fund ECI REC.
- At the end of the year, if there’s a margin, it’s allocated to you based on how much energy you used.
- Excess revenue is returned to members in the form of deferred patronage dividends, rather than paid out as shareholder dividends.
Local Control, Rural Areas, and Community Focus
Cooperatives were originally formed to bring electricity to rural and underserved areas that investor-owned utilities found unprofitable.
- Decisions are made locally by people who live in and understand the community.
- Cooperatives often reinvest in local development, such as public and community services, education programs, and economic initiatives.
Service Over Profit
For-profit utilities often avoid rural areas because they’re less profitable. At ECI REC, we exist to serve—not to maximize profits.
- Our mission is to provide reliable, affordable electricity to rural Iowa communities that others may overlook.
- Member satisfaction and long-term sustainability often take precedence over short-term financial gains.
Guided by Policy and Accountability
Our Board of Directors takes its fiduciary responsibilities seriously and works diligently to guide ECI REC in the best interests of all members.
- Deferred patronage allocation and retirement are governed by:
- State and federal laws.
- Our Articles of Incorporation and Bylaws.
- ECI REC’s Board and Administrative Policy.
- Our Board of Directors works hard to ensure this process:
- Is fair and reasonable to current and former members.
- Provides ECI REC with sufficient equity to operate effectively.
- Protects ECI REC’s financial stability.
Deferred Patronage Dividends in 2025
This year, ECI REC’s Board once again retired deferred patronage capital—continuing a tradition we’ve proudly upheld annually for the past 25 years.
- Members who received electric service in 2010 and/or 2016 saw a line item on their June bill titled “Deferred Patronage Dividends.”
- Former members received their dividends as mailed checks.
In short, electric cooperatives are unique because they are member-owned, community-focused, and nonprofit, with a strong commitment to serving areas that might otherwise be left behind by for-profit utilities.
Your Board of Directors takes its fiduciary responsibilities seriously and works hard to guide ECI REC in the best interests of all members. These are your neighbors—people who live and work alongside you—making thoughtful decisions with your needs in mind.
If you see a director in your community, take a moment to say thank you. They’re not just Board members—they’re your fellow members, working for you and your future.