Cooperatives Are Special...

As a member of Lane Electric Cooperative, you are also an owner. You elect the Board of Directors, and you have a voice in the way the Cooperative is managed. Cooperatives exist to provide members with electrical service on a non-profit basis. Investor-owned utilities create a rate structure that will maximize their profit so they can pay dividends to their stockholders. Cooperatives also need to collect more money than it costs to provide electricity, but in a co-op, these “net margins” do not belong to the cooperative. These margins belong to the individual consumers who paid the money on their monthly electric bills that means you.
Margins are accumulated in order to provide financial stability for Lane Electric. This financial stability helps keep electric rates at a competitive level by reducing the amounts of funds that have to be borrowed by Lane Electric.

Return On Investment…

Each time you pay your electric bill, you are making a small investment in your cooperative. This excess capital from net margins is the only form of equity a consumer- owned utility has, and as it accumulates, it is assigned to your Capital Credits account.
As Lane Electric’s finances permit, the Capital Credits are returned to our members. The decision is made by our Board of Directors after a thorough examination of the co-op’s financial position.

1. Every year you will receive a statement or a message on your bill letting you know the amount of Capital Credits that you accumulated in the previous year. The amount of Capital Credits on this statement is determined by the excess revenues over expenses for the cooperative and your total billings for the year. However, you will not receive this money until a future year.
2. Capital Credits are returned at the discretion of the Board of Directors if finances permit. A discounted option may be offered to retire Capital Credits early at the discretion of the Board.

“Check’s In The Mail…”

When the Board decides that Capital Credits will be distributed, checks will be mailed to you. All you have to do is sit back and wait for the check to get to you.
Normally you do not have to report your Capital Credits payment on your income tax, however, if you have any questions concerning tax liability, contact your tax preparer or the IRS.

What if I Move?

If you move to another home within Lane Electric territory, your Capital Credits move with you.
If you move outside Lane Electric’s territory, you should keep us apprised of your new address. We will mail your check to you when the years you were on Lane Electric’s system are disbursed.

Thank you. If you have any questions regarding the information in this brochure, please call us at (541)484-1151