In 2022, Adams Electric is returning $2.1 million back to its members. Referred to by the cooperative as Ownership Rewards since 2015, the co-op will reach a milestone this year, surpassing the $50 million mark for total rewards returned to members. Ownership Rewards exist because Adams Electric is a not-for-profit electric cooperative owned by its members. We don’t have shareholders or investors who take a portion of the revenue we collect.
The third cooperative principle revolves around members’ economic participation. Economic participation is best measured through members’ ownership or equity in the cooperative. Each member’s ownership is tracked separately and fluctuates from two main factors.
1. Allocation of Margins. Any money we take in that’s more than what we need to operate the co-op belongs to our members. To record how much of that surplus belongs to each member, the board of directors allocates it based on how much of that surplus is attributable to that member. Allocations increase members’ ownership or equity in the cooperative.
2. Return of Ownership Rewards. The board of directors annually decides how much money can be returned to members as Ownership Rewards each year while still maintaining an appropriate financial position for the cooperative. This return of funds decreases members’ ownership or equity in the cooperative.
While we can never be sure that each year will bring a return of Ownership Rewards, the board of directors strongly believes that you should be rewarded as a member of the cooperative and will do its best to continue this practice in the future.
It’s been our privilege to represent you in this cooperative and an honor to continue to send you a refund on your ownership in the cooperative.