The Board of Trustees of Lynches River Electric Cooperative is pleased to announce the refund of the remaining capital credits for the year 2001.
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 Lynches River, 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 $556,500 to the members on record for 2001.
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 Lynches River Electric Cooperative would have to borrow or raise by increasing rates.
Bill credits are issued 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 your October bills. Capital credit checks will be issued and mailed at the end of September. For a member to receive capital credit refunds, you must have been a member for the year we are returning for and your LREC account must be in good standing.
The refund of capital credits is just one of the many benefits of being a member of Lynches River Electric Cooperative. 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 between Monday through Friday between 8 a.m. to 5 p.m.