Pioneer Returning More Than $3 Million in Capital Credits to its Membership
Message from the President
On behalf of Pioneer and the board of trustees, I’m happy to announce that we are returning more than $3 million in capital credits back to our members.
Cooperative utilities are unique in their business model and capital credits are a benefit received for being a member of the cooperative. Capital credits represent your investment or equity in the cooperative. Your equity is invested in poles, wires, transformers, and other vital infrastructure that provide a long-term benefit to the members.
Capital credits are retained within the cooperative to maintain financial flexibility and strength and to fi nance capital improvement and expansion projects that allow us to maintain our reliable electric system. Using retained capital credits instead of borrowing money helps keep the cost of electricity down.
Each year, the Pioneer board of trustees evaluates the financial condition of the cooperative to determine whether or not we should retire capital credits. The board supports a general retirement plan that allows current members and former members to receive a portion of the refund over time.
Some of you may have received your bill credit beginning in mid-May, while others will receive theirs in the coming weeks, depending on your respective billing cycles.
Pioneer has retired more than $61 million in capital credits since 1981 and we hope to continue the trend well into the future.
What Are Capital Credits and How Do They Work?
Capital credits are each member’s share of margins in proportion to the amount of electricity used by each member. This benefit represents member equity, or ownership, in the cooperative. Capital credits are a benefit received for being a member of the cooperative.
For frequently asked questions about capital credits, visit www.pioneerec.com/about-us/capital-credits.