WHAT ARE CAPITAL CREDITS?
As a member of an electric cooperative, you invest in LREC through your energy purchases. Each year, any margin (revenue after expenses) earned by LREC is reinvested in the cooperative. At the same time, LREC’s margin is proportionally allocated, based on electric purchases during the year, and recorded to capital credit accounts for each of the members. These accounts are maintained until the credits are retired (paid) in full. Capital credits represent each member’s ownership interest of the cooperative.