The Pedernales Electric Cooperative’s Board of Directors has approved a capital credits distribution in December of more than $12.7 million to current and former PEC members. The amount was approved after the Board reviewed the Co-op’s fiscal health and determined the distribution will not result in any adverse impact to the Cooperative.
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 capital credits distribution for 2013, outlined below, is in accordance with the Co-op’s Capital Credits Policy in place since 2011:
Members with 1983 allocations on record will receive a 100 percent distribution of their capital credits for that year. The total distribution is roughly $1.8 million.
Members with 1984 allocations on record will receive a partial distribution this year, totaling about $4.4 million. The approximately $3.6 million that will remain on record for 1984 is expected to be disbursed in December 2014.
Members with 2012 allocations on record will receive a distribution at a discounted rate. The total distribution will be approximately $6.2 million. Members will have the opportunity to opt out of the discounted distribution if they prefer to receive 100 percent of their 2012 capital credits in future year(s).
In addition, the estates of deceased members have received an estimated total distribution of $240,000 during 2013.
Current members are scheduled to receive their distributions as credits on their December bills. Former members with capital credits distributions totaling more than $10 will receive a check. A check will be issued for any distribution under $10 only upon request, or when accumulated unpaid distributions exceed $10, or when a distribution is the final distribution from an account. All former members are encouraged to contact PEC to ensure their current address is on file.
Members will receive more information about capital credits with their December bills, including the process for requesting the opt-out option. More information is available at www.pec.coop/capitalcredits.