The board of directors of LaGrange County REMC has authorized the return of capital credits. The cooperative will return a total of $444,000 to members. A portion comes from our power supplier, Wabash Valley Power.
The decision was made to return capital credits to current and former members who had electric service from LaGrange County REMC in 1994 and those who had electric service in 2016. Checks* should be received in mid-December for those receiving capital credits.
Cooperatives follow a unique consumer-focused business model led by a set of seven principles. The third cooperative principle, “Members’ Economic Participation,” requires all members to pay a share of building distribution infrastructure — poles, wires, substations and other equipment — to ensure everyone gets a steady supply of power. This amount is included in the monthly electric bill.
Members then also share in the margins or capital credits. On an annual basis, any funds remaining after expenses have been paid goes into a capital credit account for each co-op member. The amount of money each member receives depends on how much electricity each one used in the calendar year that is being returned. For a period of time, normally 20 to 30 years, these capital credits are invested in the cooperative.
As a not-for-profit cooperative, our goal is to provide members with electricity at a price that is as close to cost as possible. Our rate structure and the return of capital credits help us to meet this goal. Returning capital credits is one of the most tangible indications of true ownership and is just one way we are different from an investor-owned utility.
Contact LaGrange County REMC at 877-463-7165 if you have any questions regarding capital credits.
*NOTE: Checks will not be issued for amounts below $5. Capital credits will accumulate over time and be returned when the balance reaches at least $5.