As a member of our cooperative, you’re also an owner — so rather than earning profits, PEC invests a portion 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 returned to our membership. Capital credits, which are based on the dollar amount of electricity each member purchases, vary from member to member and year to year.
2020 Capital Credits Information
The PEC Board of Directors approved a distribution amount of $6.1 million in capital credits to current and former PEC members who accumulated capital credits in 2019 and 1993.
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 available for distribution on approximately a 30-year rotation. Capital credits distributed prior to the targeted 30-year rotation will be discounted. Active members may instead opt out of receiving a discounted amount when the previous year’s capital credits come up for distribution and will receive the full amount approximately 30 years later.
PEC Board of Directors approved capital credits allocations totaling $6.1 million to current and former PEC members who accumulated capital credits in 2019 and 1993. If your account earned an allocation for electricity used during 2019, the actual distribution of your capital credits will appear on your December bill.
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 2020?
In October 2020, the PEC Board of Directors approved capital credits distributions totaling $6.1 million to current and former PEC members, raising our lifetime distribution to more than $135 million since 2007.
How do I receive my distribution?
Your discounted distribution will appear as a credit on your December 2020 bill. Former members with a current address on file will receive a check in the mail for their distribution amount.
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.