Did you notice your Capital Credit allocations on your June bill? Capital Credits is one of the benefits of being a co-op member. If you received electricity from PVREA in 2015, you were allocated capital credits funds. Here’s a little more description on the allocation and retirement process, and why you get the credit.
Why It’s Your Money
If you are receiving electric service from PVREA, the co-op automatically establishes a “membership” in the cooperative for you. This means a portion of what you pay on your electric bill goes to help rebuild the cooperative’s operation and infrastructure, and that makes you part owner of the co-op.
Every spring, the Board of Directors looks at the prior year and allots any funds remaining after all expenses are paid into a budget item called patronage capital. This designated pool of money is then “allocated” to members, based on the prior year’s electric consumption. In this case, the more power you use, the larger your allocation. The allocation is not a check, but a bookkeeping of the amount of money you have invested in the Cooperative’s electric system based on your electric consumption. This allocation amount was reflected as an actual dollar amount on your bill in June.
Every year the Board takes a hard look at the operation, and decides if a capital credit retirement is feasible. If they decide to retire capital credits, the money is paid out or “retired” from each member’s account, based on their past allocations. The retirement check members receive in the mail are tangible evidence of each member’s investment into the cooperative.
Capital Credits are just one of the ways PVREA is different from other utility suppliers. If you are enrolled in paperless billing, you can view your bill with the allocation notice in SmartHub.
Click here to watch a video on capital credits.