A story numbers can tell

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Posted on Jul 28 2026 in A Co-op Perspective, Boone Power, Carroll White REMC, Fulton County REMC, Heartland REMC, Jasper County REMC, Jay County REMC, Kankakee Valley REMC, Kosciusko REMC, LaGrange County REMC, Marshall County REMC, Miami-Cass REMC, Newton County REMC, Noble REMC, Steuben County REMC, Warren County REMC

I’ve mentioned before in this column that I have a degree in accounting. It’s probably no surprise, then, that I’m a bit of a numbers guy. But here’s something you might not expect: the numbers themselves are rarely the most interesting part of my job. The conversations behind them are.

One of my favorite conversations each year centers around something called patronage capital. It isn’t a term most people use every day, but it tells an important story about what makes electric co-ops different. Most businesses exist to generate profits for investors. Co-ops exist to serve their members. That simple difference changes everything.

When a co-op has financial success beyond what is needed to operate and invest in the future, those margins aren’t considered profits in the traditional sense. They are allocated back to the members who helped create them. Over time, as the co-op’s financial position allows, those dollars are returned. That’s patronage capital.

Many of you reading this may have received capital credit checks from your local co-op over the years. What many of you may not realize is that Wabash Valley Power is a co-op, too. We are a co-op of co-ops, owned by the 21 local electric co-ops across Indiana and Illinois. We all operate under the same cooperative principles.

Last month, our board of directors approved the return of patronage capital to our member co-ops. It’s a decision I always enjoy because it represents much more than a financial transaction. It’s tangible proof that the cooperative business model works exactly as it was designed. We carefully manage resources, make long-term investments, maintain a strong financial position, and, when appropriate, return value to the member cooperatives that own
us. As someone who enjoys numbers, I appreciate what the financial statements tell us. But I appreciate even more what patronage capital represents.

It reflects decades of thoughtful planning, disciplined decision-making, and a commitment to putting members first. It reminds us that our success is not measured by how much we keep. It’s measured by how well we serve the people who own this cooperative. To me, that’s one of the best stories the numbers can tell.

Jeff Conrad is CEO of Wabash Valley Power Alliance, based in Indianapolis.