1. It starts when you pay your bill: LREC tracks how much electricity you use and pay for throughout the year. Each payment you make is your contribution to the day-to-day operating costs of your electric cooperative.


2. Recording and reporting: Like all companies, at the end of each year, we calculate our annual margin (profit). But because we are a cooperative, we divide this margin proportionally by the amount of electric each member purchases throughout the year and allocate margins to each members account. This is called Capital Credit allocation.


3. Where’s the money? The money, called Capital Credits, is invested in equipment and workforce needed to meet the current and growing demand for electricity. It is your equity in the cooperative.


4. Do I ever receive this money? You do! This process is called retirement. Each year, LREC’s Board of Trustees reviews company finances, and when our financial condition permits, the Board decides to retire (pay) Capital Credits to our members based on their allocated share. Notices about retirement totals and years are printed in the December newsletter. Make sure to keep us updated on addresses so we can contact you about Capital Credit retirements. 


5. December 2020 Retirement (refund)  LREC's Board of Trustees voted to return $1.2 million to you and other past and present members who received electric service from LREC during the years of 1989 and 2019. 100% of the margins from 1989 will be refunded and 15% of margins will be refunded for 2019. The amount you receive is based on how much you paid for electricity during the years listed. If the members’ retirement refund amount is below $74.99, the amount will show as a credit on your December bill, and if the amount is higher than $75.00, members will receive a check.


6. The Average Capital Credit Refund for a member on our lines during the year 1989 is around $41.90, and for 2019 is $18.05.

If you have questions about capital credits or would like to learn more call 918-772-2526.



The Cooperative Difference