PEC will distribute capital credits to eligible members as credits on October electric bills. This distribution is a result of a decision made by Pedernales Electric’s Board of Directors to comply with terms of the pending settlement agreement and distribute capital credits, even though the settlement is currently being appealed. This first distribution will total approximately $4.7 million and is consistent with the pending settlement agreement of the lawsuit filed against PEC in July 2007.
Members whose accounts have a capital credit balance and who will receive a bill for electric use during October 2008 are eligible for capital credits disbursements. Plans for future distributions have not been finalized at this time.
Capital credits accumulate when revenues exceed expenditures; however, they are not held in an account as funds. Capital credits are either reinvested into utility infrastructure or returned to members when PEC’s Board of Directors determines it is financially feasible. This practice is in accordance with the capital credits policy stated in PEC’s Bylaws. PEC’s Board revised its previous capital credits disbursement program to comply with the pending settlement agreement.
For additional capital credits information, members may visit www.pec.coop or call PEC toll-free, 1-888-554-4732, for their capital credits account balance.
by ANNE HARVEY