Equity
Like most electric cooperatives nationwide, LCEC operates at cost, returning any excess revenue to members in the form of Equity, commonly known as Capital Credits. Ownership equity in LCEC is not equivalent to cash or liquid assets. Equity represents members’ investment in the LCEC electrical system in the form of substations, poles, lines, transformers and other facilities. Equity equates to financial strength for LCEC members. It allows for improvements in the delivery of power and service through capital projects without incurring costly loans. LCEC is proud of the financial strength that has allowed us to return equity to our members. It is one of the benefits of belonging to a financially stable electric cooperative.
In March 2025 the Board of Trustees approved an equity retirement for current and former members who received service in 2000. This retirement will be paid in the form of a bill credit or check before May 1.
LCEC is proud to have returned more than $340 million in equity to members over the years.
1. PATRONAGE
LCEC keeps track of electric usage and payments throughout the year.
2. MARGINS
After each calendar year, LCEC reviews finances to determine the amount of excess revenue after operating expenses.
3. ALLOCATIONS
Margins are allocated to each members’ equity ownership account based on how much electricity the member paid for that year.
4. RETIREMENT
When financial conditions allow, the LCEC Board of Trustees elect to retire (pay) allocated equity in the form of a bill credit or check.
Retirements are traditionally paid in the second half of the year. Retirement amounts <$250 are paid as a bill credit to active members. All other retirements are paid by check.
A retirement is paid 20 to 30 years after it is allocated.