Patronage Dividends
Members of Nishnabotna Valley REC share in the benefit of doing business with the Cooperative. That benefit is in the form of capital credits, or patronage dividends. The capital credits you get are revenues in excess of expenses to operate the REC.
Patronage dividend notices are mailed to members each April to indicate how much money was allocated to them for the previous calendar year. Each member's share is in proportion to the electricity they use.
Patronage dividends are returned to members on a 20-year roll. Iowa law also allows a percentage of the current year's dividends to be returned.
While retained by Nishnabotna Valley REC, allocated patronage capital contributes to the Co-op's equity and strengthens its financial position. Annually, the Board of Directors reviews the financial position and determines whether a percentage of the current year's allocation may be paid to the members without jeopardizing the cooperative's financial stability.
Members of Nishnabotna Valley REC have received over $2.0 million in patronage dividends since the Cooperative began in 1936.
