The difference between annual revenues and annual expenses (termed a margin) is assigned to members’ capital credit accounts based on their annual billings for electric service. RLEC retains those capital credits for a number of years for financial security and to reduce debt. If the Cooperative’s financial health is good, some of those capital credits assigned are paid out to members.
At RLEC, capital credits are paid out on a “first in, first out” basis. Capital credits are also paid out in the event of the death of a member or their spouse.
In 2016, the Red Lake Electric Cooperative (RLEC) Board of Directors has approved the payment of capital credits totaling $481,783. This payment continues a strong tradition of equity revolvement at RLEC.
A portion of capital credits assigned to members in 1998 will be paid. Active members, if they received service in those years, will see a credit adjustment on their March billing statement. Inactive members (those no longer receiving services from RLEC) will be mailed a check.