THE ‘REFUND AMOUNT’ (CAPITAL CREDITS) WILL BE HIGHLIGHTED IN BLUE ON THE BILL YOU RECEIVE IN DECEMBER.

Capital credits from member-owned, not-for-profit companies like Paulding Putnam Electric Co-op are somewhat similar to the dividends paid to shareholders of investor-owned utilities. The difference is that a co-op’s “shareholders” are also the members that it serves, and the “dividends” are paid out to the cooperative’s members.

WHAT’S THE DIFFERENCE BETWEEN ALLOCATED AND RETIRED CREDITS?

Allocated capital credits appear as an entry on the permanent financial records and reflect your ownership in PPEC. Every year in April, PPEC notifies its members of the amount added to their patronage capital account through a notice on their electric bills. When capital credits are retired, a bill credit is issued to you.

HOW ARE THE CAPITAL CREDITS CALCULATED?

Each year, net margins of the cooperative are divided among the members based on each member’s electric use for the year. Members who use more electric service receive a larger amount of capital credits allocated to their account.

WILL I RECEIVE A PAYOUT EVERY YEAR?

Not necessarily. The board of trustees must authorize a retirement before you receive your capital credits. When considering a retirement, the cooperative’s board of trustees must consider the financial condition of the cooperative.

I HAVE BEEN A PPEC MEMBER FOR SEVERAL YEARS. WHEN WILL I RECEIVE A CAPITAL CREDITS PAYMENT?

PPEC operates on a 30-year capital credits rotation cycle. PPEC’s funds (called patronage) are used to help finance reliability improvements, line rebuilds, and upgrades. Most of that equipment has a life of 20 to 50 years. The unretired capital credits, or “equity,” serves a vital function — allowing PPEC to operate economically and effiectively, while investing in infrastructure for members’ future needs.

Just another perk of being a not-for-profit co-op member! Learn more about capital credits at PPEC.coop/capital-credits or call 800-686-2357.