Business : REC members receive patronage in form of discounted June bills

At its May meeting the East Central Iowa REC Cooperative’s Board of Directors voted to retire $500,000 in patronage back to its member-consumers.

Patronage represents the margins, or profits that Cooperative has earned on its member-consumers purchased electricity in past years. These margins are the member-consumers contribution to the equity in East-Central Iowa REC.

The Cooperative uses this equity to maintain their poles and wires, rebuild the distribution system, and pay expenses. When ECI’s financial condition allows, they return these margins back to the member-consumers who generated them.

This year ECI REC did not send checks, but placed a credit on members June bills. If members purchased electricity from East-Central in 1992, 2003, or 2004, they will receive a line item on their bill that reads, “Deferred Patronage Dividend”.

By crediting member’s bills and not mailing them a check, ECI REC saved their member-consumer’s cooperative over $5,000.

With the cost of energy increasing, ECI feels an obligation to save every dollar that they can. If member-consumers did not purchase electricity from East-Central in 1992, 2003, or 2004, there will be no credit on their bill.

Since 2003 East-Central has returned more than $3,657,615 to its members.

Members with questions about the credit received, or not received, may call REC toll-free at 877.850.4343.