Lake Region Electric Cooperative

What Lake Region Electric Cooperative does

Lake Region Electric Cooperative (LREC) is a member-owned electric distribution cooperative founded in 1937 and headquartered in Pelican Rapids, Minnesota. The cooperative delivers electricity to over 30,000 active services spanning residential, agricultural, commercial, and resort/hospitality customers across six counties (Otter Tail, Wilkin, Grant, Douglas, Clay, and Becker) in Minnesota's lake country region. Wholesale power is procured through Great River Energy, the cooperative's generation and transmission provider, while LREC manages last-mile distribution infrastructure including AMI smart metering, SCADA substation monitoring, load management/demand response programs, and a $3M vegetation management program leveraging AiDash satellite-AI technology and Exacter predictive scanning.

Revenue is generated primarily through metered electricity distribution under a hybrid pricing model combining fixed facility charges and variable kWh rates, with Power Cost Adjustment (PCA) mechanisms passing through wholesale rate changes. Capital credits are retired annually to members based on patronage, with $1.24M retired in 2024 representing the 12th consecutive year exceeding $1M. The cooperative's wholly-owned subsidiary Lake Region Energy Services (LRES) extends into natural gas distribution in Dent, Parkers Prairie, and Miltona. Member engagement is maintained through SmartHub digital portal, annual meetings, district meetings, Operation Round Up charitable program ($776,520+ donated since 2007), and a multi-channel communications stack including newsletter, social media, and in-person service.

LREC is governed by an elected board of directors and is currently led by CEO Joel Janorschke, who assumed the role in June 2025 following Tim Thompson's 17-year tenure. Strategic priorities include MN Carbon-Free by 2040 compliance (60% by 2035), grid resiliency investments, renewable energy buildout (2.4 MW solar development with Nokomis Energy in 2025), and technology-enabled reliability improvements. The cooperative achieved a record-tying 9/10 member satisfaction rating in its 2023 survey and serves as a member of MISO, MREA, and multiple transmission joint ventures.

Name

Lake Region Electric Cooperative

Legal name

Lake Region Electric Cooperative

Website

https://lrec.coop

Company type

Private

Founded year

1937

Operating status

Operating

Headcount range

11–50 employees

Short description

Lake Region Electric Cooperative is a member-owned electric distribution utility founded in 1937, serving over 30,000 residential, agricultural, commercial, and resort customers across six counties in Minnesota's lake country, with electricity, natural gas, and renewable energy programs.

Ownership category

akta.pro rank

Product category

Electric Utility Distribution

NAICS

Electric Power Generation, Transmission and Distribution (2211), Electric Power Transmission, Control, and Distribution (22112), Utilities (22)

SIC

Electric Services (4911), Electric, Gas & Sanitary Services (4900), Gas & Other Services Combined (4932)

akta.pro primary industry

Electric Cooperatives (Rural/Member-Owned Utilities) (EUADABAC)

akta.pro secondary industries

Local Distribution Company (LDC) Natural Gas Distribution Utilities (TLAGADAA), Substations, Transformers & Grid Step-Up Facilities (EHV Substations, GSU Transformers) (EUAMAFAE)

Keywords

• Electric utility services
• Rural electrification
• Electric cooperative
• Energy distribution
• Natural gas services

Headquarters

HQ city

Pelican Rapids

HQ country

United States

HQ region

North America

Offices7 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Supply Chain, Infrastructure, Personnel, Operations, Technology or R&D, Marketing or Sales

Revenue model

1. Electric Distribution: Core revenue from electricity distribution to over 30,000 residential, agricultural, and commercial services. Revenue collected through monthly bills comprising facility charges and metered energy costs plus Power Cost Adjustments.
2. Natural Gas (LRES): Lake Region Energy Services subsidiary provides natural gas distribution to members, generating positive impact for rate payers by reducing electric rate collection requirements.
3. Energy Programs and Services: Revenue from air source heat pumps, residential standby generators, space heating programs, water heater programs, electric vehicles, solar programs, security lights, and rebates/loans.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels12 records

Core offering

Lake Region Electric Cooperative (LREC) is a member-owned electric cooperative that distributes electricity to over 30,000 residential, agricultural, and commercial services across six Minnesota counties. It supplies wholesale power through Great River Energy and offers energy efficiency programs, demand response load control, solar subscriptions, standby generators, and natural gas distribution via its subsidiary Lake Region Energy Services (LRES).

Product overview

Lake Region Electric Cooperative operates as a member-owned electric utility delivering energy services to over 30,000 services in Minnesota's lake country. The cooperative's product portfolio centers on its SmartHub digital member portal, which provides bill viewing/payment, outage alerts, and usage monitoring. Core services include Load Control Programs for demand response and Vegetation Management utilizing AiDash AI satellite imagery. The cooperative offers energy efficiency programs including Air Source Heat Pumps, Off-Peak Space/Water Heating, and Smart Thermostats. Renewable energy options encompass Community Solar, GoWest Solar, and Renewable Energy Interconnection. Additional services include Residential Standby Generators, Security Lights, Natural Gas through subsidiary LRES, EASY-PAY budget plans, and Rebates/Loans. The cooperative also operates Operation Round Up, a charitable rounding-up program supporting local community organizations.

Differentiator

Problem solved

Functional benefit

Brands

• Lake Region Energy Services (LRES): Natural gas subsidiary of Lake Region Electric Cooperative, providing natural gas distribution services in areas including Dent, Parkers Prairie, and Miltona.

Products and services

• Electricity Distribution Service Core electric utility service delivering metered electricity (kWh) and related fixed facility charges to residential, agricultural, and commercial members in Otter Tail, Wilkin, Grant, Douglas, Clay, and Becker counties in Minnesota.
• Natural Gas Distribution (LRES) Natural gas distribution through subsidiary Lake Region Energy Services (LRES), serving areas including Dent, Parkers Prairie, and Miltona in Minnesota.
• SmartHub Member Portal Online and mobile platform enabling members to view and pay bills, access outage information, monitor current energy usage, and sign up for text/email outage and usage alerts.
• Load Control / Dual Fuel Demand Response Program Demand response program allowing the cooperative to manage off-peak loads and dual-fuel heating systems during high market pricing or cold temperatures, reducing costs for participating members.
• Community Solar and GoWest Solar Programs Community Solar subscription program allowing members to subscribe to shared solar installations, and GoWest Solar program offering direct solar participation for residential and commercial members.
• Air Source Heat Pump Program Program promoting installation of air source heat pumps as an energy-efficient heating and cooling solution for residential members.
• Residential Standby Generators Program supporting residential backup power generation solutions for members needing standby electricity supply.
• Off-Peak Space Heating Program Program offering discounted electricity rates for members using electric space heating systems during off-peak hours.
• Off-Peak Water Heating Program Program providing reduced electricity rates for water heating during designated off-peak periods.
• Electric Vehicles Program Program supporting electric vehicle adoption among members through charging infrastructure and specialized electric vehicle rates.
• Security Lights Outdoor security lighting services for member properties, billed as part of the electric service offering.
• Vegetation Management Service Systematic service maintaining acceptable tree, shrub, and vegetation growth around power lines and easements, leveraging AiDash satellite imagery and AI to identify and prioritize clearing needs.
• Renewable Energy Interconnection Service enabling members to connect member-owned renewable energy generation systems (such as solar panels) to the LREC electrical grid.

Quantifiable outcome

• Over 30,000 active services served reliably
• +4 more outcomes

Named customers4 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability3 records

Feature6 records

Partnerships

13 partnerships are on record, tiered core and supporting.

• Nokomis EnergycoreStrategic or Co-development Partner · 1 January 2025Minneapolis-based clean energy developer engaged to assist with 2.4 MW solar array development. Selected after year-long interviewing process. Has experience with Farmington, Faribault Public Schools, and Waite Park Community Solar Garden.
• HRExpertiseBPsupportingImplementation/ SI/ Consulting Partner · 1 January 2025HR consulting firm engaged by LREC Board for CEO recruitment and interview process following Tim Thompson's resignation.
• Midcontinent Independent System Operator (MISO)coreStrategic or Co-development Partner · 1 January 2025Regional grid operator managing electric grid across multiple states. LREC operates within MISO footprint and must comply with MISO requirements for transmission projects.
• Dakota Valley Electric Cooperative (DVEC)supportingStrategic or Co-development Partner · 1 January 2024North Dakota electric cooperative. LREC sent 7 lineworkers to assist DVEC during December ice storms, demonstrating cooperative principle of Cooperation Among Cooperatives.
• AiDashcoreTechnology or Integration · 1 January 2022Vegetation management technology using satellite imagery and AI to identify overgrown power lines and optimize vegetation clearing plans. AI algorithm improves with each imaging session.
• Great River Energy (GRE)coreStrategic or Co-development PartnerLREC's wholesale power provider and generation & transmission cooperative. GRE supplies electricity to LREC and is implementing projects including wind generation, transmission line construction, and the Cambridge Energy Center dual-fuel upgrade with Form Energy iron-air battery deployment.
• ExactercoreTechnology or IntegrationPredictive technology company providing handheld scanning devices to identify equipment in pre-fail conditions, enabling proactive replacement before outages occur.
• STAR Energy ServicessupportingTechnology or IntegrationContracted for underground and overhead line inspections within LREC service territory townships.
• EXOsupportingTechnology or IntegrationCompany specializing in nondestructive pole testing conducting annual inspections throughout LREC service territory.
• Minnesota Rural Electric Association (MREA)coreStrategic or Co-development PartnerState association representing Minnesota electric cooperatives. LREC participates in MREA initiatives including advocacy for local co-op control, net metering reform, and nuclear moratorium lifting.
• Form EnergysupportingTechnology or IntegrationTechnology company developing long-duration iron-air batteries. GRE's Cambridge Energy Center will host first commercial deployment of this technology capable of storing energy over several days.
• Northland Reliability Project PartnerscoreStrategic or Co-development PartnerJoint project with Great River Energy and Minnesota Power building 180-mile 345-kV transmission line from Grand Rapids to Becker, MN. Part of MISO's first phase of generation integration and grid resilience.
• Alexandria-Big Oaks Project PartnerscoreStrategic or Co-development PartnerJoint transmission project with Great River Energy, Minnesota Power, Missouri River Energy Services, Otter Tail Power Company, and Xcel Energy adding new transmission circuit along Interstate 94.

Scale indicators15 records

Recent moves5 records

Expansion highlights6 records

Direct peers

• Crow Wing Power: Minnesota distribution electric cooperative that hired LREC's former CEO Tim Thompson; closely comparable as a member-owned rural electric distribution utility serving a similar Minnesota lake/forest region.
• Dakota Valley Electric Cooperative: North Dakota distribution electric cooperative that received mutual aid from LREC lineworkers during 2024 ice storms; directly comparable as a rural member-owned electric distribution cooperative.
• Runestone Electric Association: Minnesota distribution electric cooperative serving nearby rural counties; directly comparable member-owned distribution utility with overlapping MREA participation.
• Connexus Energy: Minnesota member-owned electric cooperative; comparable cooperative business model with a larger service territory, useful for benchmarking technology and program scale.
• Stearns Electric Association: Minnesota distribution electric cooperative; comparable rural member-owned utility with similar demand response, load management, and renewable programs.
• Minnesota Valley Electric Cooperative: Minnesota distribution electric cooperative; directly comparable rural electric distribution utility with similar AMI and load control deployments.

Broad incumbents

• Great River Energy: LREC's wholesale generation-and-transmission cooperative; comparable in the cooperative utility space but operates upstream as a G&T rather than as a wires-only distribution utility.
• Otter Tail Power Company: Investor-owned utility operating across western Minnesota including overlapping counties; comparable electric provider but operates generation, transmission, and distribution across a larger footprint.
• Minnesota Power (ALLETE): Regional electric utility partnering with LREC/GRE on the Northland Reliability and Alexandria-Big Oaks transmission projects; serves overlapping Minnesota territory with a broader generation and T&D portfolio.
• Xcel Energy: Large investor-owned utility partnering with LREC partners on Alexandria-Big Oaks transmission; operates electric and gas distribution in adjacent Minnesota territories under regulatory framework that cooperatives benchmark against.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks6 records

Key highlights6 records

Customer concentration

• YouTubeyoutube.com/user/LakeRegionElectricCo?feature=watch
• Facebookfacebook.com/LakeRegionElectricCoop
• LinkedInlinkedin.com/company/6868380
• Instagraminstagram.com/lrec.coop

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Subsidiaries1 record

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Lake Region Electric Cooperative