LCEC has sent out $7.2 million in equity checks to memberships that have been closed since 2004. LCEC has returned more than $191 million to customers over the years, which is among the best for the 800 cooperatives in the United States.
Next month, LCEC will distribute another $5.7 million to current and inactive customers in the form of checks and credits to their account.
Equity is the value of the investment members make in LCEC. Customers provide a portion of the capital necessary to operate the business through the payments they make each month. Without this investment, LCEC would be required to borrow additional funds from outside sources to provide electric service, resulting in higher base rates.
LCEC has been able to return equity and has not raised rates over the past four years. Each year, once operating expenses are paid, the amount that remains is the net margin. The Board of Trustees review the LCEC financial position annually to determine if a portion of the net margins can be distributed to members.
Visit www.lcec.net/equity/ for more information about equity.