Capital Credits: Your Ownership
Because PEC is a cooperative owned by its members, it doesn’t earn profits. However, when revenues exceed expenses, the cooperative does earn margins. Each year, those margins are allocated to members in the form of capital credits, which reflect member ownership in PEC, and the cooperative uses members' capital to fund operating activities and reduce borrowing, with the intent of later repaying that capital back to members.
After reviewing the cooperative’s finances each year, the PEC Board of Directors determines whether a portion of capital credits can be retired, or returned, to members. The Board also evaluates the method, basis, priority and timing of all capital credits retirements. Because capital credits are based on the dollar amount of electricity a member purchases, the retirement amount will vary from member to member and from year to year.
2016 Capital Credits Distribution Information
In October, the PEC Board of Directors approved a capital credits distribution of nearly $8.9 million to current and former PEC members. This year’s distribution, outlined below, is in accordance with the cooperative’s Capital Credits Policy:
Current members are scheduled to receive distributions as credits on their December bills. Members with multiple accounts will receive credits for all of them on a single account’s bill.
Former members with capital credit distributions totaling more than $10 will receive a check. A check may be issued for any distribution under $10 by request or when accumulated unpaid distributions exceed $10. Former members are encouraged to contact PEC to ensure their current address is on file.
2016 Capital Credits Frequently Asked Questions »
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The cooperative's capital credits policy serves as a guide for capital credits allocations and retirements. If you have questions about the capital credits allocated to your account, you can email us at email@example.com anytime or call our capital credits line at 1-800-230-2207 between 8 a.m. and 5 p.m.
Please remember to include your name, account number and the best phone number to reach you, and one of our member services agents will contact you after researching your account.