The PEC Board of Directors has approved a $12.1 million capital credits distribution to PEC members this year.
As a cooperative owned by our members, PEC does not earn profits. Instead, when revenues exceed expenses, we earn margins. Each year, when financial conditions allow, those margins are allocated to members in the form of capital credits — one of the many benefits of cooperative membership.
“PEC is pleased to report the positive financial conditions that allow us to return these margins to our members,” PEC Chief Financial Officer John Davis said. “This is more than an annual bill credit — it’s the cooperative difference at work.”
This year’s distribution will be executed in accordance with our capital credits policy as follows:
- Members who accumulated capital credits in 2017 will receive 55.4 percent of their allocation, discounted to approximately 18.25 percent, which represents the net present value of their credits. This distribution will total approximately $5.9 million. Members may opt out of their discounted 2017 capital credits if they prefer to receive nondiscounted credits in a future distribution, which we predict to be on a 30-year cycle.
- Members who accumulated capital credits in 1987 and 1988 will receive 100 percent and 77 percent, respectively, of the nondiscounted credits allocated from those years. This will total approximately $5.9 million.
- Current members are scheduled to receive distributions as credits on their December bills. Members with multiple accounts will receive all of their credits on one 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 us to ensure their current address is on file.
FAQs and more detailed information are available at pec.coop/capital-credits. If you have additional questions, please call our capital credits line at 800-230-2207, Monday through Friday, between 8 a.m. and 5 p.m.