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Capital Credits

LaGrange County REMC is a not-for-profit cooperative that is owned by more than 6,000 members in LaGrange County, and areas bordering in Elkhart, Noble and Steuben counties. 

Cooperatives follow a unique consumer-focused business model led by a set of seven principles.  The Third Cooperative Principle, “Members Economic Participation” requires all members to chip in a bit on their monthly electric bill to help pay for building distribution infrastructure—poles, wires, and substations—to ensure everyone gets a steady supply of power. 

Members also share in the margins or capital credits. On an annual basis, any funds remaining after expenses have been paid, goes into a capital credit account for each co-op member based on the amount of electricity each one used during the year.

Normally, margins or capital credits are invested in the cooperative and returned after a period of twenty to thirty years. Following a review of the financial condition of the cooperative, the board of directors determines the year(s) and level of capital credits to retire.

As a not-for-profit cooperative, our goal is to provide members with electricity at a price that is as close to cost as possible. Our rate structure and the return of capital credits make this possible. Returning patronage capital is one of the most tangible indications of true co-op ownership and is just one way we are different from an investor owned utility.   It has been our practice to retire capital credits in December of each year.  Current members receive their capital credits as a bill credit on their electric bills and checks are mailed out to former members.    

If you have any questions about capital credits, contact LaGrange County REMC at 877.463.7165.

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