North Fort Myers, Fla., May 30, 2012 – Earlier this year, LCEC Trustees approved an equity distribution of $5.7 million to current and inactive customers and checks and credits were distributed this week. LCEC has returned more than $191 million to customers over the years, which is among the best among the 800 cooperatives in the United States.
Equity is the value of the investment customers/members make in LCEC. As members of a not-for-profit cooperative, LCEC customers provide a portion of the capital necessary to operate the business through the payments they make each month. Without this investment, LCEC would be required to borrow additional funds from outside sources to provide electric service, resulting in higher base rates. LCEC has not had a base rate increase in four years. Although equity is not equivalent to cash, all LCEC customer/members are allocated equity capital annually if revenues exceed expenses. The Board of Trustees review the LCEC financial position annually to determine if a portion of the net margins can be distributed to members.
- Active customers with an equity account balance of more than $56 will receive a distribution.
- If the distribution amount is more than $250, customers will receive a check unless their account has a past due balance.
- If the distribution amount is less than $250, active customers will receive a credit on their bill.
- Inactive customers (customers who have closed their account) receiving a distribution amount of at least $1 will receive a check.
In 2012, general distribution checks range from $1 to more than $136,000.
Visit www.lcec.net/equity/ for more information about equity.
Established in 1940, LCEC is a not-for-profit electric distribution cooperative serving Cape Coral, North Fort Myers, Marco Island, Sanibel and Captiva Islands, Pine Island, Everglades City, Immokalee, Ave Maria, and parts of Lehigh Acres. LCEC is committed to providing efficient, reliable, cost-competitive electric and emerging energy solutions and excellent service to our customers. LCEC is also a major contributor to the local economy as one of the largest employers in Lee County with nearly 400 employees and by its support of many local agencies through charitable giving, volunteerism and environmental stewardship.