My electric cooperative is sending me a refund.
Only your local electric cooperative makes every member an owner of the business. Unlike other electric utilities, Lake Region Electric Cooperative exists to make sure you have a reliable source of electricity, not to make a profit. As a Member-owner, you share in the profits in the form of Capital Credits.
Lake Region Electric works hard every day to keep your rates as low as possible, and it’s nice to know that when there are profits, they are returned to you, the Members. In 2015, your board of directors approved a capital credit refund of $1,092,880 bringing the total refunded over the years to more than $18 million.
Lake Region Electric Cooperative is always there, reinvesting in our communities. That’s why in an electric cooperative, the people have the power.
The Cooperative Difference
Lake Region Electric Cooperative is a not-for-profit business. It charges a fair rate for electricity and uses the money to make sure there’s enough power for every Member. The revenue is used to maintain equipment, build lines and run the business. Anything that is left over is returned to the Members in the form of Capital Credits.
Capital Credits are the most important distinction between a cooperative and any other form of business. Members of the cooperative have a financial stake in the business. This is called Member Economic Participation and is one of the principles on which this business was founded. That is why it is so important that each and every person who receives electricity from Lake Region Electric understands that they are Members of the cooperative, not just consumers.
Capital Credits are assigned to each account and refunded when financial conditions permit. How much a member receives is based on how much electricity they used during the year or years that are being refunded.
The December 2015 refund of $1,092,880 represented the years of 1984 and 2014. Refunds appeared as a credit on the members’ electric bills.
If you have questions about capital credits, or would like more information, simply click here, or contact us by phone at 800-364-LREC.