Agricultural Economics Department

 

Cornhusker Economics

Date of this Version

2017

Document Type

Article

Citation

Cornhusker Economics, March 8, 2017, agecon.unl.edu/cornhuskereconomics

Comments

Copyright 2017 University of Nebraska

Abstract

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.

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