This month, the PEC Board of Directors approved capital credits allocations totaling more than $58.4 million to current and former PEC members. If your account earned an allocation for electricity used during 2017, you’ll be able to see it on your July bill.
Please note: Although a dollar amount for 2017 will be assigned to every eligible account next month, the next capital credits distribution (payout) isn’t scheduled until December.
What are capital credits?
As a member-owned cooperative, PEC doesn’t earn profits. When revenues exceed expenses, we earn margins, which we allocate to our members every year in the form of capital credits. Credits are based on the annual amount you pay for your electric service, so 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 distribution (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 also opt to receive a discounted amount much sooner when that year’s capital credits come up for distribution.
Can I receive this money now?
Not right away. Because the capital is reinvested to support the cooperative’s operating activities, the entire balance cannot be distributed at once. Allocations act as a record of your ownership in the cooperative and are currently being distributed in full on about a 30-year rotation. You will have the option to receive this year’s amount at a discounted rate much sooner, most likely this December.
Learn more about capital credits.