Message for You...

Last month I began a conversation about Lumbee Rivers EMC’s headquarters move to our new location.  It was my intent to delve further into the building, the move and provide an update on what our membership can expect.  But like most plans, unavoidable delays and unforeseen complications have reared their ugly heads!  Due to delays in material delivery (building glass and other materials) and other construction factors, our substantial completion date moved from October 17th to November 6th.  Our planning efforts were targeting a move date of November 29th and 30th, but that is now uncertain.  Once the building glass is completely installed and the interior of the building securely enclosed, the work to finish the building will definitely pick up pace.  When we do set the move date, be assured that we will communicate the date through our all our communication channels.

While I am not able to discuss this month what I had planned, it does free me up to talk about the recent wonderful decision made with regards to returning capital credits this year.  Each year, the Board of Directors evaluates the financial strength of the organization and the ability to return capital credits.  This year, it is my honor to share with you that your Board of Directors approved the return of $5 Million to the members.  This represents the largest amount returned to our members in a single year.

For those of you who may be new to the cooperative business model, let me take a few moments to explain the beauty of capital credits.  Cooperatives like LREMC are not-for-profit.  That means the monies that are left over each year after LREMC pays what it owes are what we call margins.  Unlike for-profit entities whose shareholders get those left over monies, our margins are allocated back to the contributing members based on their usage.  The margins are retained for a period and re-invested in the cooperative so that we can borrow less money.  By reducing the amount of money we borrow to expand and maintain our system, we are able to keep our rates low and competitive.  Over time and as financial strength is maintained, those margins are retired and returned to the members.  Everyone always asks ‘Am I getting a check?’  If you are a Duke/Progress member, the answer is a resounding NO.  If you were a LREMC member in 1994, 2010 or 2014, chances are there may be a check with your name on it!  Checks are scheduled to be mailed in early October.

I hope to see you all at our 78th Annual Meeting of the Members on Thursday, October 11th!

Message from Your CEO - October 2018 SHunt_sign.png Carmen E. Dietrich, President & CEO