Peace River Electric Cooperative (PRECO) is returning more than $4,180,000 in capital credits to members who received electric service during 2005 and a portion of 2006. Qualifying members with active PRECO accounts and capital credit retirements under $50 receive credit on their November or December electric bills. Members with retirements of $50 or more will receive their checks in December.
Because PRECO is a not-for-profit electric distribution cooperative, members share in its ownership and prosperity. Your participation in capital credits is one of the key benefits of being a PRECO member.
Allocation and Retirement of Capital Credits
PRECO returns capital credits through a two-step process:
Step 1: Allocation
Each year that PRECO earns margins—revenues that exceed operating expenses— the cooperative allocates those margins to members’ accounts based on the amount of electricity each member purchased during that year.
Step 2: Retirement
When the cooperative’s financial condition allows, PRECO retires, or pays, those allocated capital credits to members who helped build the cooperative’s equity.
Capital Credits Facts
All electric co-ops operate at cost, so any excess revenues—called margins—are allocated and returned to members in the form of capital credits.
Since Peace River Electric Cooperative was founded in 1940, we have returned more than $38,000,000 in capital credits to members.