Approximately 19,000 former and current members of Lorain-Medina Rural Electric Cooperative will get an annual Christmas present of sorts in the form of refund credits totaling nearly $1.3 million.
Checks were mailed to former members with refunds totaling $100 or higher, according to an LRME statement.
LRME, which serves roughly 16,000 members in Medina, Ashland, Huron, Lorain and Wayne counties, authorized the patronage capital credit refund at the November meeting of the electric cooperative’s board of trustees.
The action marks the fourth year in which the majority of refunds were issued as credits on members’ bills rather than in checks mailed to them.
Approval of the capital credit refund totaling $1,293,000 marks the 31st consecutive year LRME has provided such refunds. Over the years, a total of $18,931,682 has been issued in capital credit refunds.
The 2013 refund is the largest ever made by the electric cooperative.
The nonprofit organization’s yearly issuance of capital credits is unique to electric cooperatives, according to LRME President John Eaton.
Member-owners provide the money to operate, maintain and expand such cooperatives, which is held as working capital for new construction, equipment and other improvements. The retention of funds enables the cooperative to keep from raising rates to pay for infrastructure improvements.
— from staff reports