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 $2 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. 

“The retirement of capital credits is one of the most important things we do, and the practice is unique to the cooperative business model,” said Mark Bakk, general manager at Lake Country Power.

Explaining how capital credits work, Bakk said, “When Lake Country Power members use the electricity we provide and pay their monthly bills, we track their business with the co-op over time. After Lake Country Power pays all operating expenses throughout the year, and if any operating revenue is leftover, we issue a capital credit allocation to their accounts. Then when financial conditions permit, the co-op’s board of directors votes to pay capital credits back to our members.”  

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.

“Capital credits are just one of the many benefits of co-op membership,” said Tracy Peterson Wirtanen, chief financial officer at Lake Country Power. “Giving back to our local members instead of outside parties is one of the many aspects that set cooperatives apart from other types of businesses.”

Active members will see a credit on their December 2024 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 2024 capital credit retirement will be available in LCP’s December member newsletter, Newsline.  

Between Lake Country Power and its three predecessor cooperatives, more than $74 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.