Membership in RESCO is limited to cooperatives, other self-help or mutual organizations, municipalities, and public power districts, which are engaged in the business of providing electric energy or telephone services to users at cost and without profit, to organizations engaged in the generation and transmission of electric energy for such purposes, and central organizations or federations of such organizations.
RESCO Not-For-Profit Business Model
As a member-owned cooperative, RESCO does not answer to the profit motive of individual investors, but is here to serve our Member-Owners on a not-for-profit basis. That is, we are only in business to cover our overhead costs. This is a much different business model than our for-profit competitors who strive for the biggest profit possible.
If RESCO does make profit, or excess margins, RESCO’s Member-Owners receive patronage refunds in the form of cash and capital credits for the excess margins that are generated by RESCO. RESCO pays back 20% of the refund in the form of cash and the other 80% back in the form of a capital credit certificate based on the pro-rata share of margins each member contributes. In addition, on an annual basis, RESCO’s Board of Directors decides how much of the previous years’ capital credits should be paid back and retired. This allows RESCO’s members to eventually receive back cash for all of their prior years’ capital credits.
Better Material Pricing
Not only does membership allow our Members-Owners to participate in cash/patronage refunds, it also allows our Members-Owners to get better upfront pricing on material. As our membership grows and we gain additional patronage, it allows RESCO to continually lower our pricing and charge less gross margin since we have a greater sales base to cover our relatively fixed overhead costs.
RESCO members are the owners of one of the largest electrical supply distributors in the Midwest. As the owners of RESCO, each member receives one vote and the ability to participate in the governance of RESCO by attending the annual meeting, electing directors, or running for the board of directors. Member-Owners of RESCO have the same equal say as every other member, unlike investor-owned distributors where the amount of say is governed by the number of shares held.
Give your utility the RESCO membership advantage today!
- Member-owned, not-for-profit, cooperative business model
- Reasonably priced quality products, delivered on-time
- Top-rated customer service and support
- Capable, knowledgeable, professional staff
- Money-saving ordering and inventory solutions
- Information and training
- Emergency storm service
- 75+ years of stability and service
Become A Member
If you are an eligible organization and you would like to join the nearly 200 members of RESCO, please talk with your RESCO sales representative, or contact us.