This October, United Cooperative Services joins the more than 900 electric cooperatives and 40,000 other cooperatives from other sectors across the country to celebrate National Cooperative Month.
The purpose of this annual celebration is to recognize the cooperative difference and remind members about United’s purpose to serve its membership with exceptional service and value.
Electric cooperatives power 56 percent of the national landscape and serve 42 million people, according to the National Rural Electric Cooperative Association. These co-ops power more than 22 million businesses, homes, schools and farms in 48 states, all while upholding the Seven Cooperative Principles that put a focus on providing members with service rather than profits.
“Right on time for National Cooperative Month, we are so pleased to be able to give member dividends back to our United members this year,” said United CEO Cameron Smallwood. “When members pay their electric bill each month, they’re not only paying for the reliable service, but also investing in a company they partly own. As a result of that equity stake in the business, United members share in cooperative margins. After paying for all operating costs for the fiscal year, members may receive a part of the money left over.”
Member dividends accumulate based on the amount of electricity used by each member. Each year, United’s board of directors may vote to retire a portion of these dividends, based on the financial stability of the cooperative. This year, the board voted to retire $2.2 million.
Dividend checks are issued to active members when the credited amount is $20 or greater. Credits up to $19.99 are applied to active accounts. Since 2000, United has distributed $87 million in member dividends. These member dividends represent the member-owners’ return on equity. Member equity is the essential tool for United to build, maintain and upgrade the facilities necessary in providing reliable, affordable electric service to the cooperative’s membership.
“Receiving a member dividend demonstrates how United is committed to its members,” Smallwood said. “Our mission will continue to be providing you with exceptional service and value.”