Press Releases

1.4 Million in Capital Credits Returned

You already know you are a member, not a customer, of LREC. You are also an owner of the cooperative. LREC is a not-for-profit cooperative owned by the members it serves. We do not earn excess profits for investors and shareholders. Our rates are set to recoup the costs of operating the cooperative, meet debt obligations, and re-invest in the electric distribution system. Operating margins are created when our revenues exceed our operating expenses during a specific year.

These margins are allocated back to the members who purchased electricity during the year they were earned. The amount allocated back to you depends upon the amount of capital you contributed to the cooperative during the year. In other words, some of the money you paid to the cooperative for electric service during the year is allocated back to you as Capital Credits. Each member’s capital varies; therefore, the amount of Capital Credits allocated back to each member varies.

Although Capital Credits are returned annually, this money is retained for several years before being paid back to the members. LREC retains Capital Credits because they are a significant source of equity for the cooperative. LREC uses this equity to improve the electric infrastructure for reliability and expansion and to help keep your rates as low as possible because equity helps reduce the debt needed to grow and maintain your cooperative.

The Board of Trustees voted to return $1.4 million in Capital Credits in December. Current members will see a credit on their bill, and past members should be receiving a check. Those who received electric service in 1992 will be refunded 100% of the margins. Also, those who were members in 1993 will receive 29% of the margins and 26% from 2021.

The amount you receive is based on how much electricity you purchased during the years listed. For a member on our lines during the year 1992 is around $20.61, and for 1993 it is $16.19. The average refund for 2021 is $25.75. Cooperatives return profits to ALL their members. This is one of the benefits of being a co-op member.

If you want to learn more about Capital Credits, visit: www.lrecok.coop/capital-credits

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