Pedernales Electric Cooperative distributed $10 million in capital credits to its members in January. The PEC Board of Directors approved the distribution at its December 19 meeting, and credits appeared on January bills for current members.
As a nonprofit cooperative, PEC doesn’t earn profits. Instead, any positive margins are reinvested in the cooperative’s infrastructure or returned to members. The distribution is just one of the benefits of being a part of an electric cooperative.
“Capital credits and the cooperative business model sets us apart from other utilities — these credits represent our members’ ownership and investment in the cooperative,” said PEC Chief Financial Officer Randy Kruger. “PEC is committed to keeping our system strong, resilient and member focused.”
Capital credits are based on the amount of electricity each member uses and therefore the amounts vary from member to member and year to year. After assessing the cooperative’s financial condition, the PEC Board determines what portion of positive margins can be returned or distributed to members. This process helps keep PEC financially stable while offering members the benefit of a distribution whenever possible. This year, the average distribution for current PEC members was about $22.
More information on PEC’s capital credits program is available online at mypec.com/capital-credits. Members with questions can reach PEC’s dedicated capital credits line by calling 800-230-2007, Monday through Friday, between 8 a.m. and 5 p.m.
