By: Michael Wilson | Director of Communications | Logan County Electric Cooperative
Electricity makes a vital difference in our homes, but it’s the connections we build with our community that truly make a lasting impact. For 88 years, Logan County Electric Cooperative has done more than deliver power — we’ve been a driving force for growth in our community, supporting our members and investing in our shared futures.
Founded in 1936 by visionaries who believed in a brighter tomorrow, the cooperative transformed rural Logan County, bringing modern conveniences — like running water — to families who had long lived without them.
Today, we remain dedicated to our mission: to empower our members with value, support, and a genuine commitment to the community, always prioritizing service over profit.
The heart of our business model
Logan County Electric Cooperative operates on a different model than other electric companies. While all electric companies deliver power, we place members first by focusing on service, not profit. Consumer needs are prioritized over
shareholder returns. This approach makes cooperatives unique, ensuring that we prioritize operational efficiency and place our members’ needs first.
Investing in our members
As a member-first, not-for-profit, federally tax-exempt cooperative, Logan County Electric operates at cost, which means any excess revenue is returned to our members as capital credits. This commitment is one of the most important
things we do because it embodies our mission of prioritizing member benefits and investing back into the community.
Logan County Electric Cooperative operates at cost, meaning any excess revenue is returned to you, our members, as capital credits. This approach reflects our commitment to putting members first while investing in the community we all share.
Even as a not-for-profit, we rely on revenue exceeding expenses to reinvest in capital improvements and ensure safe, reliable electric service. Additionally, through programs like Operation Round Up, academic scholarships, Youth Tour sponsorships, the Logan County Fair, United Way, Run-to-Educate, safety demonstrations, sponsorships, and more, Logan County Electric gives back in ways that benefit our members and community.
Navigating the capital credits journey
Capital credits provide the working capital the cooperative needs to provide reliable, affordable electricity and signify each member’s ownership stake in the co-op.
Here’s how it works:
- Membership: Your electric bill not only covers the cost of electricity, taxes, and other fixed expenses, it also supports operations, including investments in our infrastructure and contributions to strengthen our community.
- Surplus, or margins: At the end of the year, if the cooperative has more revenue than expenses, the surplus is allocated as credit to each member’s account, proportional to the amount of electricity each member used.
- Infrastructure investment: Before returning any credits to members, the co-op allocates a portion of the surplus to maintain and upgrade infrastructure, ensuring reliable and sustainable service.
- Return of credits: When the cooperative’s financial position allows, a portion of these capital credits is returned to members as a check or bill credit.
- Ongoing cycle: This process repeats each year, building your share in the cooperative’s success the longer you are a member.
- If you move: Any capital credits allocated to your account remain yours, even if you’re no longer an active member. You’ll continue to receive your share of capital credits annually, based on the cooperative’s distribution schedule. Please keep your contact information current so we can reach you when it’s time to issue these credits.
Balancing capital credit distribution
To ensure all members benefit, we use a blend of two accounting methods — First in, First out (FIFO) and Last in, First out (LIFO) — when retiring capital credits. This strategy benefits both long-term members and new members. For example, in 2023 we retired $ 250,000 from older credits (1998 and 1999) using FIFO and $80,000 from 2022 credits with LIFO. We will continue this approach in 2024, retiring older credits with FIFO while distributing additional credits using LIFO.
To date, the cooperative has returned over $12 million in capital credits to our members.
Understanding our cooperative surplus
Though we are a not-for-profit, generating a surplus is essential to maintaining reliability and providing member benefits.
Here’s why:
- Operational sustainability: Revenue is needed to cover costs, from maintenance and employee salaries to infrastructure improvements. By generating a surplus, we ensure financial stability and dependable service for our members.
- Reinvestment: Instead of distributing profits to shareholders, we reinvest in the cooperative and the community. This allows us to upgrade facilities, expand services, and implement new technologies that benefit our members.
- Member benefits: Surpluses are used to enhance member services and provide capital credits, so members see direct returns from their investment in
the cooperative. - Emergency reserves: Excess revenue allows us to build reserves for emergencies and unforeseen expenses, providing a financial cushion for the cooperative during challenging times.
- Community impact: The co-op is committed to serving the community. From educational programs to community projects, we direct profits toward initiatives that align with the cooperative’s values and support our mission.
Your investment in the cooperative is vital in today’s rapidly changing world, and many future challenges. By investing in our infrastructure and innovative technology, we work to ensure our cooperative can withstand disturbances — whether from severe weather events, economic fluctuations, or other unforeseen circumstances. Our proactive approach to maintenance and upgrades helps safeguard not just the flow of electricity but also the stability of our local economy and the well-being of our members.
Together, we build a bright future
Being a member of Logan County Electric Cooperative is about more than just receiving reliable electricity; it’s about being part of a community that prioritizes your well-being and invests in a brighter future. Each year, your support helps fund essential programs, improvements, and community projects that make a significant difference in Logan County.
Thank you for your participation, whether through attending our annual meeting, staying informed about cooperative news, or embracing your role as a member. Your engagement empowers us all to strengthen our
shared vision for a connected and thriving community. We invite you to stay engaged and join us in shaping a future where our community thrives for generations to come. Together we are a powerful force for good.
