YOU get the credit
Prince George Electric Cooperative retires more than $391,357.65 to members.
It’s time for you to get the credit —capital credits, that is― for helping build, sustain, and grow your local electric cooperative. PGEC retires – or pays by cash or credit – more than $391,357.65 to members like you across portions of six counties served by the co-op.
When you signed up to receive electric service from PGEC, you became a member of an electric utility. While investor-owned utilities return a portion of any profits back to their shareholders, electric co-ops operate on an at-cost basis. So instead of returning leftover funds, known as margins, to folks who might not live in the same region or even the same state as you do, PGEC allocates and periodically retires capital credits (also called patronage dividends, patronage refunds,
WHERE DOES THE MONEY COME FROM?
Member-owned, not-for-profit electric co-ops set rates to generate enough money to pay operating costs, make payments on any loans, and provide an emergency reserve. At the end of each year, we subtract operating expenses from the operating revenue collected during the year. The balance is called an operating “margin.”
HOW ARE MARGINS ALLOCATED?
Margins are allocated to members as capital credits based on their purchases from the cooperative—how much power the member used. Member purchases may also be called patronage.
DOES DOMINION ENERGY RETIRE CAPITAL CREDITS?
No. Within the electric industry, capital credits only exist at not-for-profit electric cooperatives owned by their members.
ARE CAPITAL CREDITS RETIRED EVERY YEAR?
Each year, the PGEC Board of Directors decides whether to retire capital credits based on the cooperative's financial health. During some years, the co-op may experience high growth in the number of new accounts, or severe storms may result in the need to spend additional funds to repair lines. These and other events might increase costs and decrease member equity, causing the board not to retire capital credits. For this reason, PGEC’s ability to retire capital credits reflects the cooperative’s strength and financial stability. The board alone decides whether to retire capital credits.
WHAT IF I MOVED?
If you move or no longer have electric service with us, it is important that you inform the PGEC of your current address so that future retirements can be properly mailed to you. If you purchased electricity during the year 2021 being retired, then you are entitled to a capital credit retirement, even if you move out of the service area. We will send your retirement check by mail if it has your current address.
If you have any questions, please feel free to contact a Member Services Representative at 804-834-2424.