Tax Reform has no Impact on Nolin RECC
The tax status of electric co-ops remains unchanged by the recent tax reform legislation.
Electric cooperatives are not-for-profit organizations operating at cost to deliver affordable and reliable power across 56 percent of the nation. As not-for-profit and primarily tax-exempt entities, the federal corporate tax reduction will not affect most electric cooperatives. Since electric co-ops base their rates on the cost of acquiring and delivering electricity, any reduction in costs from suppliers of electricity could be passed on to the members.
Some co-ops may see a reduction in their wholesale power or transmission costs if they purchase electricity or transmission service from for-profit providers. However, Nolin’s power provider, East Kentucky Power Cooperative is, as the name implies, a co-op. Therefore, both Nolin and our power provider are not affected by the recent tax reduction.
Operating at cost is a key component of the cooperative business model. Electric cooperatives strive to keep rates affordable for all members and already return margins to their member-owners when it is economically feasible. As a co-op, Nolin will continue to focus on our core mission – providing affordable and reliable power at cost to our members/owners.