GETTYSBURG, PA: In late November, the Adams Electric board of directors voted to return just over $1 million to its membership due to unanticipated, non-rate related income and lower energy supply and distribution costs in 2021.
The strong financial performance of the cooperative allowed every membership’s primary electric account to receive a one-time credit of $35.75 in December.
As a not-for-profit electric cooperative, the board sets rates to generate enough money to pay operating costs, plus a reasonable margin. Any margin is the member’s equity and is returned to the members through Ownership Rewards, or one-time bill credits when the financial condition permits.
“Our goal is to bring in enough money through rates to cover the costs of doing business,” says Board President Glenn Bange. “When we have unanticipated margins, it’s important to get this money back into our members’ hands. As member-owners, it belongs to them. It’s one of the benefits of being part of a co-op.”
In March of 2021, the cooperative returned $2 million to its membership through Ownership Rewards. Ownership Rewards are a benefit of being a current or former member-owner of an electric cooperative. For more than 50 years, members have received a return on their investment in Adams Electric based upon their share of the cooperative's net profits.
Adams Electric Cooperative is a not-for-profit, member-owned electric distribution utility serving 33,500 member-accounts in Adams, Cumberland, Franklin, Perry and York counties. Adams Electric is an equal opportunity provider and employer.