Rappahannock Electric Cooperative Returned $3 million to Members
When members-owners of REC received their electric bills in November, they were met with a pleasant surprise. The electric cooperative returned $3 million in capital credits to its member-owners.
“Capital Credits are the members’ share of the annual margins — money remaining after expenses are paid — and are assigned to an account in their name,” explained Chris Headley, REC’s manager of administrative services and controller. “REC’s Board of Directors authorized the return of a portion of the accumulated Capital Credits as a general retirement once they determined the Cooperative was in stable and adequate financial condition to meet operating costs.”
Each REC member-owner is assigned Capital Credits based on their purchases of electricity during the previous year. This invested amount represents the value of their ownership in the Cooperative. Anyone who receives electricity from REC is a member-owner.
“It is important to everyone at REC that we efficiently manage the Cooperative’s expenses,” Headley added. “As a cooperative, we work for our members, not for investors or shareholders. Capital Credits are a great benefit of being a member of an electric cooperative.”
REC has returned over $80 million in Capital Credits to members since 1980. Unlike other electric utilities, the Cooperative exists to make sure members’ needs are always met, not to make a profit. For more information on Capital Credits, log on to www.myrec.coop.
REC provides electric service to nearly 160,000 connections in parts of 22 Virginia counties. With its general office in Fredericksburg, Va., the Cooperative operates and maintains more than 17,000 miles of power lines through its service area, which ranges from the Blue Ridge Mountains to the tidal waters of the Chesapeake Bay. Follow REC on Facebook, Twitter and YouTube.