New Jersey § 48:24-16

§ 48:24-16.

a. A rural electric cooperative shall be operated without profit to its members, but

the rates, fees, rents, or other charges for electric energy, and any other facilities,

supplies, equipment, or services furnished by the cooperative shall be sufficient

at all times: (1) to pay all operating and maintenance expenses necessary or desirable for the prudent

conduct of its business and the principal of and interest on the obligations issued

or assumed by the cooperative in the performance of the purpose for which it was organized;

and (2) for the creation of reserves. b. The revenues of the cooperative shall be devoted, first, to the payment of operating

and maintenance expenses and the principal and interest on outstanding obligations

and, thereafter, to the reserves for improvement, new construction, depreciation,

and contingencies as the board may, from time to time, prescribe. c. (1) Revenues not required for the purposes set forth in sub-section b. of this

section shall be returned, from time to time, to the members on a pro rata basis,

according to the amount of business done with each member during the period, either

in cash, in abatement of current charges for electric energy, or otherwise, as the

board determines, but the return may be made by way of general rate reduction to members

if the board so elects. The allocation and retirement of any capital credits shall be made by the directors

in accordance with the bylaws of the cooperative. (2) Any capital credits that remain unclaimed at the expiration of a period of three

years from the date of member notification by the cooperative to the member at the

member's last known address, as shown on the records of the cooperative, shall be

retained by the cooperative for its general corporate purposes.