Lake Country Power members will see a special credit printed on their December billing statement after Lake Country Power’s board of directors authorized a retirement of just over $1.5 million in member equity. Capital credits are a core benefit of co-op membership.
Capital credits build over time and represent member ownership in the co-op. Before returning the margins back to members, electric cooperatives use the capital to help offset the cost of debt for equipment and materials used for the construction and maintenance of the electric distribution system. This helps lower financing needs.
“Capital credits are a membership benefit of being served by a not-for-profit cooperative like Lake Country Power,” said Mark Bakk, LCP general manager. “Our goal is to provide members with electricity at a price that is as close to cost as possible.”
As a not-for-profit electric cooperative, Lake Country Power collects just enough revenue to cover its costs, with a small margin to operate the business. All margins are returned to the membership over the long term.
Active members will see a credit on their December 2023 billing statement. Inactive members (those who have moved off the co-op system) will be mailed a check to their last known mailing address if the payment amount is $10 or greater.
Detailed information about the 2023 capital credit retirement will be available in LCP’s December member newsletter, Newsline.
Between Lake Country Power and its three predecessor cooperatives, more than $72 million in capital credits have been returned to members through the years. For more information about capital credits, or to review a current list of capital credits that remain unclaimed by former members, visit www.lakecountrypower.coop.