PVREA is a not-for-profit electric cooperative, owned by the consumers we serve. Which means we're not in the business of making profits, we're in the business of serving you, our member. We return margins in the form of Capital Credits, and checks are mailed to each person who is due a capital credit payout.
Allocation vs. Retirement
Allocation. Every spring, the Board of Directors looks at the prior year and allots any funds remaining after all expenses are paid into a budget item called patronage capital. This designated pool of money is then “allocated” to members, based on the prior year’s electric consumption. In this case, the more power you use, the larger your allocation. The allocation is not a check, but a bookkeeping of the amount of money you have invested in the Cooperative’s electric system based on your electric consumption. This allocation amount is notified to members on bills every year, typically in the month of June.
Retirement. Every year the Board takes a hard look at the operation, and decides if a capital credit retirement is feasible. If they decide to retire capital credits, the money is paid out or “retired” from each member’s account, based on their past allocations. The retirement check members receive in the mail are tangible evidence of each member’s investment into the cooperative.
For any tax questions regarding your capital credits check, please refer to your tax advisor.