YOU Get the Credit!
It’s time for you to get the credit —Capital Credits, that is― for helping build, sustain, and grow your local electric cooperative. Over the years, PPCS has returned over $15.4 million in Capital Credits to our members like you.
At their October board meeting, the PPCS board of directors authorized the distribution of approximately $1,105,805 to members for the 2022 capital credit retirement. This retirement will include the remaining 2002 allocations, 80% of the 2003 allocations, and 20% of the 2021 allocations.
The Benefits of Being a Member
When you signed up to receive electric service from PPCS you became a member of our electric cooperative. While investor-owned utilities return a portion of any profits back to their shareholders, electric co-ops operate to provide a service at cost. So, instead of returning excess funds, known as margins, to folks who might not live in the same region or even the same state as you do, PPCS allocates and periodically refunds member credits based on how much electricity you purchased during a year.
How It Works
PPCS members will receive two notices:
1) Capital Credit Allocation - First, an allocation determines each member's share of the cooperative's margin for a given year. Margins are allocated or assigned to members who purchased electricity from the cooperative during the year in which the margin was generated in proportion to the electrical sales for the year. Each member’s allocation is determined by his/her kilowatt-hour consumption for the year. The co-op keeps a permanent record of each member’s capital credit account, which is where the allocated amount remains until it is paid or "retired." This notice usually is sent in May or June of each year. This is NOT a bill or bill credit applied to your account.
2) Capital Credit Retirement - After reviewing the financial health of the cooperative, the Board of Directors may declare a retirement, at which time part of each member's allocated amount is refunded. Capital credits are applied to your energy account, if they are $100 or less, or sent as a check by mail (usually in October).
Capital Credits Explained
As a member of Pierce Pepin Cooperative Services, you have a financial stake in the success of the cooperative. This short video above gives a good overview of what capital credits are and what they mean for you.