In July 2023, REC Returned about $7.7M to Members
As a not-for-profit, all revenues REC receives through monthly bill payments, beyond the costs for providing electric service, remain the property of REC’s member-owners and are assigned in the form of cash-back Capital Credits. As financial conditions allow, these credits are retired and returned to member-owners over time.
Each cooperative has to balance the retirements of these credits between margins earned decades ago compared with those earned in recent years. The REC Board each year determines the most appropriate balance between the financial needs of the cooperative and giving back to the membership.
In July, REC Returned about $7.7 million in capital credits using a “first in first out” method, recognizing our longer-term members who have had their equity in the cooperative since the 1980s.
Your Cooperative is a not-for-profit. That means all revenues REC receives through monthly bill payments, beyond the costs for providing electric service, remain the property of our members and are returned in the form of Capital Credits.
Ongoing System Improvements
Capital Credits are used to improve the distribution system and should be viewed as the member-owners' equity investment in the Cooperative. The equity investment minimizes the amount the Cooperative has to borrow.
Member Cash Back
Capital Credits are invested in the poles, wires, transformers, substations and other equipment used throughout the system to deliver reliable electricity every day. The Cooperative tracks your investment over the years of your membership.
The retirement of Capital Credits is a decision made by the Board of Directors based on the financial condition of the Cooperative. A portion of the total Capital Credits are "retired" and returned to you in the form of a Cash Back bill credit. Cash Back is based on your electric use and how long you have been an REC member.
Estate Cash Back
- The heirs of an REC member can receive any remaining Capital Credits that had been assigned to the deceased member.
- An estate representative must request the member's Capital Credits
- Representative must submit a Certificate of Qualification or a Designation of Legal Payee and a death certificate
Forms are available at all four offices.