PRECorp to retire member capital credits
June 4, 2020
In response to the COVID-19 pandemic, the Powder River Energy Corporation (PRECorp) Board of Directors voted Tuesday, May 19, to retire $8.5 million in capital credits to its member-consumers.
The capital credit process is one of the benefits of being a member-consumer of a not-for-profit electric cooperative. Capital credits are allocated to each member’s capital credit account every year, after the cooperative determines how much revenue is left after paying all expenses for that year.
The Board periodically looks at the amount of member capital and determines how much the cooperative can return to the members through a retirement, without adversely impacting the financial health of the cooperative.
The Board of Directors decided to retire capital credits now rather than wait until the usual December time frame. Walt Christensen, PRECorp Board President, said, “The PRECorp Board is hopeful that this capital credit retirement will be helpful to the membership as they deal with the impacts of the pandemic.”
“This $8.5 million capital credit retirement along with tens of thousands of dollars donated to food pantries from the PRECorp Foundation are unique ways for PRECorp to make a positive impact on the lives of our membership during these difficult times,” said PRECorp CEO Mike Easley.
This capital credit retirement will retire a portion of G&T capital credits for members who were active in 2003 and/or 2018. The retirement will be applied as a credit to June power bills for active members to help them cover the cost of June utility bills.
If the retirement is greater than the current billed amount, the remaining credit on the account will be used to help cover future billings. Inactive members will receive a check in the mail if the retirement is $5 or more. If the retirement is $5 or less, it will remain on the account until the retired amount is greater than $5.
Capital credits are a major benefit of being a member of an electric cooperative. Capital Credits are one of the seven cooperative principles: Member Economic Participation.
Please direct any questions or concerns about capital credits to PRECorp Member Service Representatives at 1-800-442-3630.