FAQ & FORMS

Equity Ownership is the dollar value of your contribution in LCEC. Each year that LCEC earns a positive net margin, a percentage of what you pay for electricity is credited to you as equity. Your personal Equity Ownership Account reflects the total dollars credited to you over the entire life of your LCEC membership. The percentage added to your account annually is determined as follows: Throughout the year LCEC pays all of its operating expenses from money collected through monthly billing. Once all the operating expenses are paid, the amount left at year-end is our net margin. Since LCEC is a not-for-profit organization these margins are allocated (or credited) to the members’ accounts in an amount based on the amount of electricity purchased throughout the year. The greater the amount of electricity used, the greater the amount credited to the account.

In 1940, Lee County Electric Cooperative was formed to provide service to an area of Southwest Florida that no other electric utility would serve. Member provided equity has allowed LCEC to provide reliable electric service to a vast service territory.

Because the members own LCEC, members are responsible for providing a portion of the capital necessary to operate LCEC. This portion of the operating money is provided through your electric charges.

Business expenses involved in operating LCEC include paying the principal and interest on debt, purchasing equipment, paying wages, building substations, purchasing poles and electric lines, and providing electrical services to all of our members.

Without the equity ownership of the members, LCEC would be required to borrow additional money from outside sources in order to continue providing service to its members. The result of borrowing additional money would be increased expenses, due to an increase in debt and interest payments. To meet the increased expenses, additional money would need to be raised through higher electric rates. These increased rates would be paid by the members of LCEC.

Net margins are what remains after expenses are deducted from the revenue earned by LCEC during the year.

Whether or not your equity ownership is returned to you and how much is returned is evaluated annually by the LCEC Board of Trustees. An annual return is dependent on the financial position of LCEC. There are certain mortgage clauses from our lenders that require LCEC to maintain minimum levels of specific financial ratios. When the Board approves a return, eligible current and former members receive an equity payout, also referred to as a retirement.

Retirements are paid 20 to 30 years after equity is allocated (credited) to a members’ equity ownership account. They are traditionally paid in the second half of the year in the form of a check or bill credit. Bill credits will apply to current members receiving a retirement of less than $250. All other current and former members who qualify for a retirement will receive a check.

Since the value of your equity ownership is not held in cash, it is not possible to receive a lump sum payment.

Your account is not a bank account that earns interest. It is an account that reflects the value of your ownership in LCEC. Your equity is invested in equipment and facilities such as trucks, poles, transformers, office facilities and lines, which are used to provide electrical service. If LCEC paid interest on each account, rates would increase to cover the additional expenses. Of course these higher rates would be paid by the members of LCEC.

Remember, equity ownership represents a return of some of the money you paid for electricity. It is not a dividend.

Yes, if the electric service is in your name you are entitled to equity ownership. Equity ownership is based on the amount of electricity purchased while an LCEC member. It is not based on your property ownership.

If you move out of the LCEC service area your equity ownership account remains open and you will continue to receive retirement checks based on the remaining value of your equity ownership as approved by the Board. When you discontinue electrical service with LCEC you will not receive additional annual allocations to your account because the allocations are based on the electricity you purchase.

In order to continue receiving equity retirements after you move, it is important to keep LCEC informed of your new address: Change of Address Form.

Unclaimed retirements are assessed a $1 per month administrative charge.

Equity is considered an asset, and therefore we may request legal documents and notarization of an affidavit to complete changes or updates to your account. All paperwork may be submitted by mail to the address below or electronically from the Secure Document Submission page.

LCEC
Attention: Equity Ownership
Post Office Box 3455
North Fort Myers, FL 33918-3455

Changing a Name Due to Marriage, Divorce or other Legal Name Change – Submit the I Have a Question About Equity form and enter the change(s) needed in the Comments section. An LCEC representative will verify the change(s) through public records or using a third-party credit reporting agency.

Correcting the existing spelling, adding a middle initial, or adding a suffix (Jr, Sr, II) to your name – Submit the I Have a Question About Equity form and enter the change(s) needed in the Comments section. An LCEC representative will verify the change(s) through public records or using a third-party credit reporting agency.

Changing a Name Due to a Death – On a joint account, a copy of the death certificate is required to transfer ownership to the surviving member.

If the account is in the deceased name only, please provide a copy of the death certificate along with the completion of a Deceased Affidavit, signed in the presence of a notary public.

If you are the personal representative, please complete a Deceased Affidavit, signed in the presence of a notary public. (On this form, you will state who the heirs are to the estate under Item 1 and then designate the person to receive checks and their Social Security number under Item 2.) As the personal representative, you will sign the form at “Heir’s Signature” line regardless of whom the funds are made payable to. Also, please provide a copy of the letters of administration or will, and a copy of the death certificate.

Adding a Joint Name to a Current Account – The current member may complete a Membership Status Change Affidavit, adding the joint name and signing the form in the presence of a notary public.

Removing a Joint Name on a Joint Account – Either joint member may remove the other member by completing a Membership Status Change Affidavit. The affidavit must be signed in the presence of a notary public.

Should the above scenarios not match your circumstances, please submit the I Have a Question About Equity form or contact the Customer Care Center at 239-656-2300 or 800-599-2356.

Equity is considered an asset, and therefore we may request legal documents and notarization of an affidavit to complete changes or updates to your account. All paperwork may be submitted by mail to the address below or electronically from the Secure Document Submission page.

LCEC
Attention: Equity Ownership
Post Office Box 3455
North Fort Myers, FL 33918-3455

Business Name Change – Complete a Business Name Change Affidavit and sign in the presence of a notary public. The affidavit should be signed by an officer of the business, or an officer of the previous business in the case of a sale. Additional documentation is necessary for the conditions below:

• Name Change for Close of Business – Include a copy of your final income tax return
• Name Change for Legal Name Change of Business – Include a copy of the Amendment to the Articles of Incorporation
• Name Change for Sale of Business – Include a copy of the purchase agreement or bill of sale

If the owner of the company is deceased, and you are the spouse requesting the change, please provide a copy of his/her death certificate and a Deceased Affidavit, along with the other documentation mentioned above (the Deceased Affidavit would replace the Business Name Change Affidavit).

If you are the personal representative, please complete a Deceased Affidavit, signed in the presence of a notary public (on this form, you will state who the heirs are to the estate under Item 1 and then designate the person to receive checks and their social security number under Item 2). As the personal representative, you will sign the form at “Heir’s Signature” line regardless of whom the funds are made payable to. Also, please provide a copy of the letters of administration or will and a copy of the death certificate along with the documentation mentioned above for evidence of ownership of the business.

Electric distribution utilities typically operate within a 30-year financial cycle. Member equity is not cash until it is retired. It is in the form of credit for investment in the electric infrastructure. Thirty years is a normal life expectancy for infrastructure such as poles, transformers, and facilities that deliver electricity. Additionally, most debt on construction of the infrastructure is financed with 30-year loans. Retiring member equity on or near the same type of cycle is best practice in the industry.