Cooperatives operate under laws, regulations and rules other business do and are incorporated as other businesses are. Cooperatives are different in the aspect that any profits or margins are returned to the members who own the business.
Cooperatives operate under laws, regulations, and rules as other businesses do and are incorporated as other businesses are. Cooperatives are different in the aspect that any profits or margins are returned to the customers who also own the business.
Riverland Energy Cooperative is operated as a nonprofit company. This means that all money that is left over after the cost of providing electric service is returned to the members in the form of capital credits. The capital credit program invests the margin in facilities to provide continued electric service until they are refunded to you, the members, as financial conditions permit. Riverland Energy Cooperative is currently on a combination 20 year FIFO (first-in-first-out) refund cycle and a percentage of all other years after your first three initial years of service. Meaning, those members that have been members of REC the longest will be the first to receive their capital credits when the board of directors authorizes their allocation. Newer members in the cooperative will receive a percentage of their capital credits until the FIF0 schedule matches the year they began receiving electric service from the cooperative. Then their capital credit amount will become greater.
All of the cooperative's allocations or margins are based on the member's purchases or electric sales from the cooperative on an annual basis.
With the membership receiving electricity at the cost of service, receiving equal ownership, and having direct input into the decision making process of the company — cooperatives are the most democratic form of free enterprise in the country.
For more information on capital credits, contact Barb at (800) 411-9115.