Welcome to East-Central Iowa REC-

We are happy to serve our current members who are receiving services, and those potential members who may be receiving services from East-Central Iowa REC. We are anxious to give you the best possible service at the least possible cost.

East-Central Iowa REC serves approximately 7,350 member-consumers and approximately 2,200 miles of line, in the counties of Benton, Buchanan, Fayette, Bremer, Black Hawk, Linn, Delaware, Clayton, Tama, Iowa and Johnson. East-Central Iowa REC currently has 10 members serving on the Board of Directors that were elected to the Board by members of the Cooperative, five Directors representing District 1 (Benton County area) and five Directors representing District 2 (Buchanan County area). Bill Frazier is the Current President of the Board of Directors.

Harry Ruth is the CEO/General Manager of East-Central Iowa REC. He was selected by the Board of Directors and is responsible to the Board for carrying out the day-to-day operations of the electric system, within the guidelines of policies determined by the Board.

East-Central Iowa REC is one of 39 rural electric systems in this state of Iowa using RUS and CFC loans. All of the rural electric Cooperatives belong to the Iowa Association of Electric Cooperatives (IAEC) and are members of the National Rural Electric Cooperative Association (NRECA), which has headquarters in Washington, D.C.

A Cooperative is a business enterprise, which is jointly owned and equally controlled by those who use it. It is a form of business with more interest in service to people than in making dollars, though it must of course take in enough money to pay its way. In a Cooperative, membership and joint ownership are open to all that want to use its services, which is differs from other forms of business enterprises. Rural electric cooperatives borrow money from RUS and CFC to build our lines and repay the RUS and CFC loans with interest. East-Central Iowa REC is owned and operated locally by the people who receive service. Rural electric cooperatives are not Government owned. As most states, Iowa electric cooperatives pay taxes on the same basis as other businesses. In a few states, taxes are levied on a basis that recognizes that most of their plant produces comparatively low revenue because lines extend into sparsely populated territory.

East-Central Iowa REC is non-profit because any margins left over after all expenses, including taxes are paid; belong to the patrons and not to the Cooperative enterprise. In practice, this can get very complicated. An electric cooperative must use money left over at the end of the fiscal year to repay RUS and CFC loans, set up reserves, and provide operating cash to carry on its current operations. In most kinds of Cooperatives where members furnish the initial capital, net margins can be paid back to patrons in cash. In electric cooperatives, the margins are credited to members in special capital credit accounts for repayment at a future date. In effect, what this amounts to is a transfer of the Cooperative's indebtedness from RUS and other lenders to the individual members. The accumulation of capital credits represents the members' equity or measures their share of ownership in the business. From time to time, as the financial position of the Cooperative permits, part of the capital credits are paid back to the members in cash. A Cooperative's non-profit status is generally spelled out in its by-laws — and sometimes by the State law under which it is incorporated.

Most rural electric cooperatives hold an annual meeting of members to give you the members an opportunity to elect directors to the board and to hear and evaluate reports on the operation of the business enterprise they own. In most states, the annual meeting also may be used by members to amend by-laws of the Cooperative as needed. To insure democratic control, each member has one vote regardless of his/her investment or use of the facilities. Watch for the Cooperative newsletter "Heartland Link" for the date of our annual meeting of members.

To read a brief history of the REC click here.

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