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The board of directors of Lynches River Electric Cooperative is pleased to announce the refund of capital credits for the year 1998.
With a privately owned business, money left over at the end of the year is considered profit and paid to the owners or investors in the form of dividends. At LREC, a not-for-profit electric cooperative, any money left over is called margins. Margins are paid in the form of capital credits and represent equity or ownership interest in the cooperative. We are pleased to be able to refund approximately $790,000 to the members on record for 1998.
As with last year, LREC will issue bill credits to members for refunds of $24.99 or less. Members receiving refunds of $25 and more will continue to receive a check in the mail. These refunds will be issued on October bills, and the capital credit checks will be issued Sept. 30, 2018.
LREC uses capital credits for a period of time to offset expenses for new construction, storm repair and other expenses. When the cooperative's finances are sound, capital credits are returned to the member-consumers. Using capital credits in this manner reduces the amount of money LREC would have to borrow or raise by increasing rates.
The refund of capital credits is just one of the many benefits of being a member of LREC. If you have any questions regarding your capital credit check, please call our office at 1-800-922-3486 toll free or 843-672-6111 local.