Capital Credits

PEC is a not-for-profit electric utility owned by the members it serves. As a not-for-profit organization, any excess revenue, called margins, are returned to members in the form of capital credits.

If you know the whereabouts of any of the organizations or individuals in the unclaimed listing, please have them contact PEC by calling 800-884-0881.

Unclaimed Listing

Capital Credit Information Video

Capital Credit FAQs

What is an allocation notice?

The Capital Credit Allocation Notice that you see on your bill or receive in the mail will let you know the amount of the capital credits that you earned in the previous fiscal year, as well as your total capital credit balance from past years. It is only a notification of your capital credit funds, not a payment notice—capital credit allocations do not have a cash value until the actual retirement of the capital credits is authorized by the board of directors.

Can I use capital credits to pay my bill?

No, capital credits cannot be used to pay your current electric bill. However, when the board elects to retire capital credits and return the funds to members, active members receiving funds in that year, will receive them as a bill credit. Generally, that credit is applied in the fourth quarter of the year.

When will I receive funds?

The board of directors decides when it is financially feasible for capital credits to be returned to members while maintaining adequate reserves of capital for business expenses.

Currently PEC is on a 30-year rotation of distributing capital credits. Most years, PEC has employed a disbursement strategy in which members who have had outstanding capital credits for the longest period received payments.

Members and former members with capital credit monies due to them usually receive them in the fourth quarter of the year. Current members receive a bill credit and inactive members receive a check, provided that PEC has a valid address on file.

What happens to funds when I move or pass away?

If you move:

Capital credits are yours to keep, even if you are no longer receiving service from PEC. When the board of directors elects to retire capital credits from the year(s) you had PEC service, a check will be mailed to you. This is why it is important for you to notify PEC if you move or if your contact information would change. You can also designate someone that PEC could contact if you are unreachable.

When you pass away:

The member’s heirs are eligible to receive any remaining capital credit funds. Heirs will need to provide PEC with documentation verifying their claim to the funds. In order to assist the member’s heirs in closing the account, PEC gives heirs the option of either adhering to the regular capital credit retirement schedule or receiving a one-time payout that is discounted based on the age of the capital credits.

Members or their heirs also have the option of donating the remaining capital credit funds to the Federated Youth Foundation.

What is the difference between allocation and retirements?

Allocation: For each year you are a member of the Cooperative, you earn capital credits, which are your share of the co-op’s margins for that year. PEC sends each member a notice of capital credit allocations in August of each year for the prior year, plus the balance from any previous years. The Allocation Notice is strictly a notice of monies to come in the future.

Retirement: When the capital credits reach the end of their rotation period, the board of directors reviews the co-op’s financial health and may elect to “retire,” or return, capital credits to members via electric bill credit or a check. The retirement is an actual payment back to members and former members.

Power Outages:

What is an allocation notice?