Farmers RECC Members Benefit from Cooperative Ownership
Members who receive service from Farmers RECC are member-owners of the Cooperative. What makes an individual or business receiving service from Farmers RECC a ‘member-owner’ instead of a ‘customer?’ The answer is simple.
When you signed up to receive electric service from Farmers RECC, you became a member-owner of a non-profit cooperative. A cooperative is owned by those it serves. Unlike for-profit businesses, a cooperative’s primary focus is on providing a needed service for its member-owners and not on generating a profit for shareholders.
Farmers RECC exists to make sure our member-owners’ electrical power needs are met. Our focus is not on making a profit. Like any other business, your cooperative needs to earn a profit, but those profits are minimized as much as possible and reinvested to help fund its operations for a period of time. Those reinvested margins are assigned to each member based on their usage for the year and are referred to as Capital Credits. Each year, as financial conditions permit, the Board of Directors may designate that a portion of the Capital Credits be returned to the member-owners.
The profits earned by large Investor-Owned Utilities go to their investors and stockholders – who are not necessarily their customers. Their number one focus is on earning a good return for their stockholders’.
Your Cooperative works hard every day to keep your rates as low as possible and your service as reliable as we can. But it’s sure nice to know that when there are profits, they go back to you.
This year, the Farmers RECC Board of Directors authorized the distribution of $399,518 in Capital Credit refunds. The money will be returned to member-owners who purchased electricity in 1996 and had a patronage capital refund of $10 or greater. Your refund amount is based on how much electricity you purchased during that year.
Farmers RECC is a local organization with deep roots in our community and a deeper commitment to the member-owners we serve. We are always there with you, reinvesting in your community. That’s why in an electric co-op, the people have the power.