WHAT ARE CAPITAL CREDITS?

As a member of an electric cooperative, you invest in LREC through your revenue contribution. 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.

Lake Region Electric Cooperative is looking for members who have unclaimed capital credit checks. If your name is on this list, you may have unclaimed capital credits available. Please email lrec@lrec.coop or call (800) 552-7658 so we can update our records and ensure future mailings are delivered.

If capital credits owed to Minnesota residents are still unclaimed after seven years, they are transferred to the Lake Region Electric Trust and used to fund the Operation Round Up program. Unclaimed capital credits for former members with out-of-state addresses will be returned to the state of the last known address based on each state’s dormancy period.

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