Member credits are one of the primary sources of equity for your co-op. And allocating and retiring these member credits are two practices that distinguish us as cooperatives from other businesses. This year alone we will return $3.6 million to our membership!
BUT WHAT ARE ‘MEMBER CREDITS’ AND HOW DO THEY IMPACT YOU?
- We track the amount of electricity you use and bill you each month
- You pay your monthly electric bill, investing operating capital into your cooperative
- This operating capital is combined with other sources of capital (like long-term debt) to invest in power lines, substations, and other electric system assets that provide you with reliable electricity
- After expenses of the cooperative are paid, we calculate annual margins
- We use annual margins to pay down debt, invest in facilities, and improve projects
- After a period of years, annual margins are returned to our members over time.
- Member credits are applied to members’ bills in September, while former members and estates receive checks
- Unclaimed member credits — checks returned to us — are used for charitable giving and educational scholarships as defined by our bylaws
You can get answers to questions about member credits online at www.pvrea.coop/member-credits