EXPLANATION OF RATES During the fifth annual telephone town hall meeting, a member called in and asked President/General Manager Rick Petty about rates. It was a great question, and we decided to share the answer about how rates are determined for all of our single-phase residential and farm members.
veryone who gets an electric bill each month has an interest in how that monthly amount is calculated. To understand how rates are set by Logan County Electric Cooperative (LCEC) and what they are used for, it’s important to understand how LCEC is structured and the differences between your electric cooperative and an invester-owned utility. LCEC is a not-for-profit electric utility, built in 1936 by the communities we serve to power the cooperative members and empower them to improve their quality of life. Because we belong to the membership we serve, rather than investors and stockholders, our purpose remains the same — to serve our local communities. LCEC has a unique understanding of the needs of Logan County. Our trustees, president, management team, and the majority of our employees live right here in our communities. We are 100% locally owned by the
20B OHIO COOPERATIVE LIVING • JULY 2019
membership, and 100% locally governed by the board of trustees, who are active LCEC members. Our seven board members, who live right here in our service territory, are democratically elected by active members. These trustees serve a three-year term and elections are held each spring before the annual meeting. The board of trustees are responsible for directing the affairs and ensuring the long-term financial health of the cooperative. To ensure these responsibilities are met, board members take on three fundamental roles — fiduciary, regulator, and advocate. As fiduciaries, the LCEC trustees are entrusted to act for the benefit of the LCEC members. When the board sets policies, monitors the general manager’s performance, approves the budget and work plan, or provides risk oversight, they work in the best interests of the collective membership of LCEC.