REC Returns Over $3 Million to Members
REC returned over $3 million in capital credits to members noted as a credit on their November electric bills. Capital credits are a member's share of the Cooperative's margins assigned to an account in each member's name.
"One of the benefits of cooperative membership is the potential for an annual credit," said Larry Andrews, REC's manager of administrative services/controller. "Because REC is not-for-profit, margins - the money left over after paying all expenses involved in providing safe and reliable electric service - are credited back to members in the form of Capital Credits."
Each member is assigned Capital Credits based on the usage of electricity purchased during the year. This invested amount represents the value of a member's ownership in the Cooperative. Members who were eligible for 2016 Capital Credits will see "Capital Credit - General" on their November billing statement identifying the amount being returned.
"REC works to efficiently manage expenses so that margins can be returned to our member-owners in the form of Capital Credits," said Andrews. "This is a contrast to investor-owned utilities that use profits to pay shareholders - an example of the 'cooperative difference.' "
REC provides electric service to over 161,000 connections in parts of 22 Virginia counties. With its general office in Fredericksburg, Va., the Cooperative operates and maintains more than 16,000 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.