Cohasset, Minn. – Lake Country Power members will see a credit printed on their December billing statement this month after Lake Country Power’s board of directors authorized a retirement of $3.9 million in member equity. Capital credits are a core benefit of co-op membership.
“Unlike for-profit companies, co-ops don’t operate to build shareholder wealth,” said Greg Randa, LCP general manager. “Our goal is to provide member-owners with electricity at a price that is as close to cost as possible. Over time and when financial conditions allow, co-op margins are returned to members in the form of capital credits.”
In a co-op, capital credits build over time. The credits represent member ownership in a co-op. The equity from members is used to help fund system improvements and reduce the co-op’s financing needs and debt burden.
Between Lake Country Power and its three predecessor cooperatives, more than $60.9 million in capital credits has 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.
Active members will see a credit on their December 2020 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 amount is $10 or greater. Detailed information about the 2020 capital credit retirement will be available in LCP’s December member newsletter, Newsline.
Lake Country Power, www.lakecountrypower.coop, is a Touchstone Energy® cooperative serving parts of eight counties in northeastern Minnesota. The rural electric cooperative provides services to nearly 43,000 members and has offices located in Cohasset, Kettle River and Mountain Iron.
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