Adams Electric returned $1.75 million in Ownership Rewards
In 2018, the board of directors for Adams Electric Cooperative is returning $1.75 million in Ownership Rewards to over 30,000 current and former members, raising the total amount given back to members to almost $43 million.
Ownership Rewards are a benefit of being an owner of an electric cooperative. For more than 50 years, members have received a return or “reward” on their investment in Adams Electric based upon their share of the cooperative's margins (net profits).
“Returning Ownership Rewards is just one benefit of the cooperative business model,” says CEO/general manager Steve Rasmussen. “Giving $1.75 million back to the local economy through our members helps to fulfill our mission of improving lives in the communities we serve.”
The money being returned represents an equity investment by members in the cooperative used for routine operations and expansion, with the understanding that it will be paid back in subsequent years. Each year members are credited with a portion of the margins as their equity investment based upon his or her use of electricity. The Adams board votes annually on whether to return a portion of that investment as Ownership Rewards.
Members who move off co-op lines will continue to receive Ownership Rewards until their investment is completely returned. That is why it's strongly encouraged to keep Adams Electric abreast of changes with a mailing address. Likewise, those responsible for the estate of a deceased member need to file the proper paperwork to close out that member’s account.
If Ownership Rewards can't be returned to a former member, then they are used locally to fund college scholarships and member assistance programs.