As a member of our cooperative, you’re also an owner — so rather than earning profits from your monthly payments, PEC invests some of that money toward strengthening the operations that power your life and assigns the rest to you. These funds are called capital credits.
Each year, the PEC Board of Directors determines what portion of capital credits can be retired, or returned to our membership. Capital credits, which are based on the dollar amount of electricity each member purchases, can vary from member to member and even from year to year.
2017 Capital Credits Information
In May 2018, the PEC Board of Directors approved capital credits allocations of more than $58.4 million to current and former PEC members. Eligible members will see their allocation amounts printed on their July bills. Pending board approval, a discounted payout will likely be credited to your December bill.
Capital Credits FAQs
What are capital credits?
As a member-owned cooperative, PEC doesn’t earn profits. However, when revenues exceed expenses, these margins are allocated to our members in the form of capital credits. Because credits are based on the annual amount you pay for electric service, the credits you earn can vary from year to year and from member to member.
What is an allocation?
Capital credits allocations are not the same as capital credits distributions (the payment of capital credits to members). They are simply a record of your ownership in the cooperative. Although a dollar amount is assigned, it is not held in an account. Instead, the funds are reinvested to support the cooperative’s operating activities with the full allocation amount distributed to you in future years (on about a 30-year rotation). You may instead opt to receive a discounted amount when the previous year’s capital credits come up for distribution.
What is a distribution?
Distribution is what we call the payout of capital credits to members that typically happens each December.
Who received distributions in 2017?
In 2017, members who accumulated capital credits in 2016 received 40.5 percent of their allocation, discounted to approximately 18.25 percent. Members who accumulated capital credits in 1986 and 1987 received 100 percent and 26 percent, respectively, of the non-discounted credits allocated from those years.
How do I receive my distribution?
Pending board approval, your discounted distribution will appear as a credit on your December 2018 bill.
How may I receive nondiscounted credits?
You may opt out of your discounted capital credits if you prefer to receive nondiscounted credits in a future distribution, which we predict to be on a 30-year cycle.
How do I receive my distribution if I’m a former member and don’t receive a bill?
Former members with capital credits distributions totaling more than $10 receive a check. Checks may be issued for distributions under $10 by request. Former members are encouraged to contact us to ensure their current address is on file.