Allocated capital credits appear as an entry on the permanent financial records of the coop and reflect your equity or ownership in PEC. When capital credits are retired, a check or bill credit is issued to you, and your equity in the coop is reduced.

No special action is required to start a capital credits account. Your membership activates your capital credits account, and you start accumulating capital credits as you purchase electricity and when the Co-op is profitable.

No. Capital credits are calculated based upon a member’s patronage. If you are billed for service for even one month, you will accumulate some capital credits if PEC has a positive taxable income in that year.

Not necessarily. The Board of Trustees analyzes the financial condition of the Cooperative annually and will not authorize a retirement if it would adversely affect the financial condition of PEC.

No. Allocations are used as the operating capital of the cooperative. They are not available until a retirement is approved by the Board of Trustees.

In the event a member dies, the capital credits in the member’s account become a part of an estate. To assist the member’s heirs or beneficiaries in closing the estate, the capital credits may be retired early after being adjusted for the time value of money upon the request by the personal representative of the estate or the heirs of a deceased member where no personal representative has been appointed. Otherwise, the heirs or beneficiaries will receive the former member’s capital credits as they are retired in future years.

In the event of death of either partner where joint membership was held, the capital credit balance will remain in the surviving partner’s name, and it will stay on the normal retirement schedule.

Your capital credit allocation balance remains intact until the Board of Trustees approve a general retirement or until the conditions of a special early retirement are met.

All members of the cooperative earn capital credits, whether it be a person, trust or a business. Capital credits are allocated to entities in the same manner as they are to a natural person. However, Capital Credits accrued as a business are not eligible for discounted, early, or estate retirements.

Corporations, partnerships, and trusts receive retirements of their allocated capital credits when the board of directors authorizes a general retirement. Capital credits are not eligible for a discounted early retirement if a corporation, partnership or trust decides to dissolve or liquidate its assets. Instead, those members will need to contact their attorney or tax accountant to determine their options for assigning the capital credit assets for future general retirements.