More than $7 million in equity was retired and returned to members with inactive accounts during the first quarter. In May, an additional $4.3 million was retired and returned to active and inactive members.
In March, the Board of Trustees also approved an allocation of $14.5 million in net margins and $1 million in unclaimed equity to LCEC members. Allocated equity is not in the form of cash; it is a credit and used as working capital. This capital is aimed at building and improving the electric system. Member investment helps to reduce the need for borrowing money and allows for lower interest rates when loans are secured. Consequently, this process helps to keep rates low. In time, a portion of member equity is retired. Active members receive a credit on their bill if the retirement is less than $250. A check is delivered for retirements of more than $250 or to inactive accounts.
LCEC is proud to have returned more than $268 million in equity to members over the years.