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Ownership equity in LCEC is not equivalent to cash or liquid assets. Equity represents members’ investment in LCEC’s electrical system in the form of substations, poles, lines, transformers and other facilities. The amount of equity allocated to each member each year is calculated based on the amount of electricity used by the member in the period. Equity equates to financial strength for LCEC members. It allows for improvements in the delivery of power and service through capital projects without incurring costly loans. LCEC is proud of the financial strength that has allowed us to return equity to our customers. It is one of the benefits of belonging to a financially stable electric cooperative. Only half of the electric cooperatives in the United States are able to return equity to members.
In 2017, the LCEC Board of Trustees approved a fourth quarter retirement in equity to current and inactive customers and to memberships that have been closed since 2009. LCEC is proud to have returned more than $243 million in equity to members over the years.
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