If a member passes away, we pay half of the patronage at its present-day value. In other words, if you paid for one percent of the power we sold, you would receive a one percent share of the margins left over at the end of the year. The amount of capital credits allocated to your account is proportional to the dollar amount of electricity you used. This money will eventually be refunded to you or your estate. We keep track of your capital credits in an exclusive account. To be a true nonprofit cooperative, we believe this money should be returned to you–we call it capital credits. In a for-profit company, this money would be called profit. Retirement of capital credits is a return of member-funded capital This becomes your investment or equity in LREMC. Cooperatives exist not to make a profit but to provide low-cost electricity. Capital credits should not be confused with profits, which are a return on capital. This money is used for capital expenditures, such as building or replacing lines and is not paid back immediately. The money remaining after the cooperative’s bills are paid each year is known as margins (it is the margin between income and expenses). They are the margins credited (or allocated) to the members of the cooperative based on their energy purchases from the cooperative the previous year. First organized in 1940, the cooperative has grown to almost 6,000 miles of line and maintains 27 substations. Headquartered in Red Springs, Lumbee River serves over 50,000 members in Cumberland, Hoke, Robeson and Scotland counties. It pays to be a member of Lumbee River EMC! Lumbee River EMC is a not-for-profit electric cooperative owned by the members we serve one of the significant benefits of being a member-owner is the receipt of capital credits.Ĭapital credits represent each member’s ownership in the cooperative. Lumbee River Electric Membership Corporation is one of 26 electric distribution cooperatives in North Carolina.
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