Thank you for supporting PVREA through what is turning out to be yet another successful year. It is only by working together that we are able to share these benefits with you, our valued membership.
Did you know that as a member of this electric cooperative, you actually own a portion of PVREA? One of the benefits of being a member-owner is the allocation of “margins” in the form of capital credits. As a not-for-profit cooperative, PVREA strives to only collect enough revenue to maintain sufficient margins, which allows us to run and expand the Cooperative to meet growing energy needs. We return margins beyond what is required to maintain and operate the Cooperative to the members in the form of capital credits.
Each year, we evaluate the financial standing of the Cooperative to determine if recommending a capital credit retirement makes good business sense. It’s important to know that severe storms, high growth in the number of new services, or other events can result in the need to repair, replace or add lines. During these years, there are increased costs which can leave little to distribute in the form of capital credits. For this reason, our ability to retire capital credits reflects the Cooperative’s strength and financial stability.
This year, I am pleased to report that the Board of Directors has approved the retirement of $3 million to members in capital credits, from years 2003 and 2016.
The amount of capital credits you receive is primarily determined by the length of service with PVREA, as well as the amount of energy you purchased during the retirement years. If you were a member in 2003 and/or 2016 and have accumulated capital credits of $10 or more, you will receive a capital credits check in the mail in September.
This year we will be issuing nearly 40,000 checks to our members. Many of those checks will be substantial dollar amounts and pumps money back into our local economy. Some of our largest energy users are local businesses, school districts, municipalities and large manufacturing companies who support our local community; the financial impact of those organizations’ capital credits checks is quite significant to them and the community they serve.
Allocating and retiring margins is just one part of what makes PVREA, and the cooperative structure, unique. We are proud to give back to our members again this year. Thank you for supporting PVREA. It is only by working together that we are able to share these benefits with you, our valued membership.
President & CEO