Date of this Version
Cornhusker Economics, March 8, 2017, agecon.unl.edu/cornhuskereconomics
A recent UNL Department of Agricultural Economics study examined strategies for helping rural electric cooperatives (RECs) accelerate the retirement of capital credits held by members. One strategy is for an REC to generate additional margins for retiring capital credits by raising the rate it charges members for electricity. By raising the electric rate, an REC can help ensure that members are financing the organization in proportion to the benefits they receive and each generation of members is carrying its own weight.