Adams Electric returned $1.9 million in Ownership Rewards
Adams Electric’s board of directors voted in March to return an additional $1 million to its membership as a special member credit amid the COVID-19 crisis. This is in addition to the $1.9 million in Ownership Rewards returned to the membership in February to cooperative members, which brings the amount returned for all years to $46 million.
“Ownership Rewards is just one benefit of being a cooperative member-owner,” says Board President Glenn Bange. “The retirement of $1.9 million to our local communities and economy through our members helps us to fulfill our mission of improving the quality of life in the communities we serve.”
Issued as a check mailed in March, 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. Members who move off co-op lines will continue to receive Ownership Rewards until their investment is completely returned.
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.