At their regular monthly meeting on October 17, Pedernales Electric Cooperative’s Board of Directors voted to distribute more than $13.4 million in capital credits to the membership. This amount represents the maximum PEC is allowed to distribute according to the Cooperative’s bond indentures.
Capital credits reflect member ownership in PEC, and the Cooperative uses members’ capital to fund operating activities and reduce borrowing, with the intent of later repaying that capital back to members. Because capital credits are based on the dollar amount of electricity a member purchases, the distribution amount will vary from member to member.
The Cooperative plans to distribute capital credits in the following manner according to its capital credits policy:
• The estates of deceased members will receive an estimated total distribution of $600,000. These estates already have received about $365,000 through September 2011.
• Members who accumulated capital credits in 1977, 1978 and 1979 will receive a 100 percent distribution of their capital credits for those years. This distribution will not exceed $6.8 million.
• Members who accumulated capital credits in 2010 will receive a distribution at a discounted rate. The total of this distribution will not exceed $6.1 million. Members will have the opportunity to opt out of their 2010 capital credits if they prefer to receive 100 percent of their distribution at a future date.
All current members are scheduled to receive their distributions as credits on their December bills. Any former member with a capital credits distribution totaling more than $5 will receive a check. These members are encouraged to contact PEC to ensure their check is mailed to their current address.
Members will receive more information about capital credits with their December bills.
Also at the October meeting, the Board praised PEC linemen Chuck Wooldridge, Brian Magott, Andy Ridge and Bubba Williams, who represented the Cooperative at the International Lineman’s Rodeo on October 15 in Bonner Springs, Kansas.
“This was the first time in the history of PEC we had a team participate in the international event,” said PEC Chief Executive Officer RB Sloan, who made the trip to Kansas to support the team. “I had the opportunity to witness their performance, and the only word I can think of to describe their efforts is ‘phenomenal’.”
More than 700 linemen from all over the world competed at the event. PEC’s journeyman team of Magott, Ridge and Williams competed in four events and earned four perfect scores. Magott, Ridge and Williams returned home with a third-place overall finish in the Cooperative Division.
“They allowed me to tag along, and I couldn’t have kept company with a better group of guys than these PEC employees,” said PEC Board President and District 1 Director Cristi Clement. “Andy, Chuck, Bubba and Brian, you did extremely well, and we are so proud of you. You’re a class act.”
In other business, the Board:
• Voted to post online a proposed draft of a Director Election Campaign Finance Policy for member review and comment. The comment period will run through November 14; members can find this at www.pec.coop.
• Appointed District 3 Director Kathy Scanlon as PEC’s official voting delegate for the 2011 District 10 meeting of the National Rural Utilities Cooperative Finance Corporation.
• Heard a presentation about potential ways to increase member attendance at the 2012 Annual Meeting.
During the member comment portion of the meeting, Lucy Stolzenburg of the Texas Solar Energy Society thanked the Cooperative for its partnership in the Hill Country Solar Tour held October 1. “By all accounts, the Solar Tour was a wild success,” Stolzenburg said. “Your well-oiled organization took the news of solar energy and energy efficiency and put it in front of the public. You put it on your website. You put it in Texas Co-op Power magazine. Thank you, thank you, thank you.”
The Board also heard members comment on PEC’s efforts to reduce controllable expenses, and on the designation of competitive matters.
The next regular Board meeting will be held at 10 a.m. on Monday, November 21 at PEC headquarters.