The February Arrowhead Electric Cooperative newsletter announced that 2,291 checks totaling more than $112,000 will be issued to AECI customers who were members of record in 1987 and years prior. According to AECI bylaws, check amounts are based on “all costs and expenses properly chargeable against the furnishing of electric energy.”
The higher the charges to a member account, the larger the payment amount. Recipients need not be current AECI members. No members who joined after 1987 will receive a check in 2012, but may be eligible for a payment when their anniversary year of membership is “retired” by the board.
AECI bylaws state: “…that at the end of each fiscal year the amount of capital, if any, so furnished by each patron is clearly reflected and credited in an appropriate record to the capital account of each patron, and the association shall, within a reasonable time after the close of the fiscal year, notify each patron of the amount of capital credited to his account.”
It has been several years since this notification has been sent. Are accounts currently being credited on an annual basis as required? It is my understanding that this bylaw requirement has been suspended by AECI management as a cost-saving measure. While cutting operational costs of the cooperative is commendable, the arbitrary disregard of AECI bylaws sets a troublesome precedent. This section of the bylaws should have been complied with by AECI management or an amendment to the bylaws presented to the membership for adoption and ratification at the next scheduled annual meeting.
Note: A bylaw-friendly cost-saving measure by AECI management might be to charge a nominal fee for the “come one, come all” annual meeting pancake breakfast to cover actual costs. Possibly even abandon the practice of serving $10 rebate coupons as dessert to encourage attendance. In contrast to AECI, most nonprofits use a pancake breakfast to raise funds…not deplete them.
Bob LaMettry
Grand Marais
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