For the 17th year in a row, the Board of Directors of LaGrange County REMC has authorized the return of capital credits. This year capital credits, also known as margins, will be returned to members who had electric service from LaGrange County REMC in 1991. The cooperative is returning a total of $350,000. Current members will receive credits on their December electric bills and checks will be mailed out toward the end of the month to past members.
LaGrange County REMC is a not-for-profit cooperative that is owned by nearly 7,000 members in LaGrange County and areas bordering in Noble, Steuben, and Elkhart counties. The cooperative operates at cost – collecting enough revenue to run and expand the business, but with no need to generate profits for distant shareholders. If the cooperative has money left over at the end of the year, it’s allocated back to the members as capital credits.
At the end of every fiscal year, Manager of Finance and Accounting Debra Gould allocates the margins to members based on the amount of electricity they consumed during the year. “Everyone who is a member of LaGrange County REMC has a capital credit account at the cooperative,” states Gould. “These capital credits are recorded annually and will be retired and paid back to the member at some date in the future.”
LaGrange County REMC holds onto allocated capital credits to cover emergencies, such as a natural disaster, and other unexpected events, and to expand its electric system, all of which require large-scale construction of poles and wires.
“Allocating and retiring excess revenue to members helps distinguish cooperatives from investor-owned utilities,” points out CEO Mark Leu. “We’re proud to support our communities by putting money back into the local economy – and into the pockets of those we serve.” LaGrange County REMC has retired or paid back more than $3.3 million in capital credits to members since the mid 1990s.
For more information about capital credits or this refund, contact LaGrange County REMC at 463-7165 or 1-877-463-7165.