$3,187,892 IN CAPITAL CREDIT ALLOCATIONS APPROVED
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.
To make an address change, all you have to do is call us 918-772-2526.