During its November 22 meeting, the Pedernales Electric Cooperative Board of Directors approved distributing more than $12 million in capital credits to co-op members.
“Positive financial conditions allowed for us to return these funds to our members,” said PEC Chief Financial Officer John Davis. “Our financials are strong, and we’re proud to follow the cooperative model and provide these distributions.”
As a cooperative owned by its members, PEC does not earn profits. Instead, PEC invests a portion of the money it collects in rates toward strengthening its operations and then assigns the rest to its members. These assigned funds are called capital credits.
When financial conditions allow, PEC returns these funds to its members. During the November 22 meeting, directors reviewed the co-op’s fiscal health and decided the $12.3 million capital credits distribution would not result in any adverse impact.
Members will receive their capital credits distribution on their December bill. The capital credits are distributed in the form of a bill credit, not a cash dispersal.
For more information on capital credits, visit the PEC webpage on them or call PEC’s capital credits line at 800-230-2207.