One of the major benefits of being a cooperative member is the receipt of capital credits, which is money back from your electric cooperative.
Here's how it works: the money remaining after Lumbee River EMC's bills are paid each year is known as margins (it is the margin between income and expenses). This money is used for capital expenditures, such as building or replacing lines, and is not paid back immediately. This becomes your investment or equity in LREMC. In a for-profit company, this money would be called profit. To be a true nonprofit cooperative, we believe this money should be returned to you–we call it capital credits.
We keep track of your capital credits in a special account. This money will eventually be refunded to you or your estate. The amount of capital credits allocated to your account is in proportion to the dollar amount of electricity you used. In other words, if you paid for 1 percent of the power we sold, you would receive a 1 percent share of the margins left over at the end of the year. If a member passes away, we pay half of the patronage at its present-day value.
When will I get my capital credits?
Capital credits are usually issued or returned to you in October. If you are a current Member, you will receive a check thru mail. If you are a past member who is owed patronage capital, you also will receive this refund.
Are you a past member?
Each year, LREMC returns capital credits to members as tangible evidence of one of the benefits of being a cooperative member. If a past member fails to claim their capital credits within four years of it issuance, the money is forwarded to the North Carolina Department of State Treasurer. Check to see if you have any unclaimed cash by visiting the NC Treasurer's website!