LCEC Board of Trustees recently approved a second quarter equity distribution of $5 million to current and inactive customers with an additional distribution of $7.5 million to memberships that have been closed since 2005.
LCEC has returned more than $203 million to customers over the years, which is among the best among the 800 cooperatives in the United States. In addition, LCEC has not raised rates in five years!
Equity is the value of the investment customers/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.
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.
Customers receiving a distribution of less than $250 will receive a credit on their bill and others will receive a check. Distributions will be made during the second quarter and customers can see their total equity allocation with their statement.
For more information visit www.lcec.net/equity/.