Lorain-Medina Rural Electric plans to refund $1.2 million in patronage capital credits to more than 18,800 former and current members the week of Dec 10.
In November, the cooperative’s board of trustees approved the record refund, marking the 35th consecutive year it has retired capital credits to current and former members. Since 1982, the cooperative has refunded more than $24.3 million in capital credits.
The majority of refunds are issued as credits on members’ bills rather than issued as checks. Bills will be mailed or emailed to members Dec. 10.
For former members and cooperative members whose refund total is $100 or more, a check will be mailed Dec. 8.
“Refunding capital credits sets cooperatives like Lorain-Medina apart from other utilities,” board president John Eaton said. “The board believes by refunding margins we’re sending a positive message to our members that the co-op is financially stable and that their board is making sure we operate efficiently and effectively. Being a member of the co-op is the reason you receive capital credits while other people who are customers of investor-owned utilities like FirstEnergy do not.”
Eaton said members provide the necessary capital for the cooperative to operate, maintain, and expand its system. The cooperative retains allocated capital credits as working capital for new construction, equipment, and system improvements throughout its service area.
Lorain-Medina Rural Electric serves approximately 16,312 member-owners and maintains 1,535 miles of line in Lorain, Medina, Ashland, Huron, and Wayne counties.