Capital Credits Allocated in May

Posted: May 1, 2024 at 1:25 pm

Like all electric cooperatives, Peace River Electric Cooperative is owned by the people it serves.  Electric co-ops provide electric service to their members-owners at cost.  

Technically, since cooperatives are not-for-profit organizations, they don’t create profits.  Instead, they generate margins.  Margins are PRECO’s revenues minus expenses.

As a member-owner, you share in the margins PRECO generates.  Margins are allocated to your capital credits account in proportion to your annual billing.  Your capital credits account is the sum of your allocations earned minus any refunds issued to date.

Capital credits are retained by the cooperative for a number of years.  During the retention period, the cooperative uses the money to build and maintain the facilities needed to provide electricity to members.  When it is financially feasible to return capital credits, the co-op issues capital credit checks or applies the capital credits to your electric bill.

PRECO members with active electric accounts will find their 2023 capital credits allocations on their May electric bills.  Postcards will be mailed to inactive members, informing them of their allocation amounts.