HILLSBOROUGH, NC – Thanks to the continued strong operation and financial performance, Piedmont Electric’s Board of Directors voted to return $1.25 million to the cooperative’s member-owners in the form of capital credits, also known as profits of margins. Because PEMC is a not-for-profit utility, margins are returned to the people the cooperative serves.
If members purchased electricity from the cooperative during 1988 and part of 1989, we will simply credit their bill or send them a check. Capital credit refunds in the cooperative business model are similar to dividends in investor business models. Each member’s share of the capital credit refund is based on their energy use during the years being retired.
However, before returning these margins back to members, Piedmont Electric uses this capital to offset the cost of debt for the construction and maintenance of the electric distribution system. This working capital represents the member’s ownership equity in Piedmont Electric.
“Capital credits are the cornerstone of the cooperative way of doing business,” said Board Chairman Bill Barber. “The board of directors is again pleased to return margins to members despite so many challenges in the economy at this time.”
Since 1975, Piedmont EMC has returned more than $22.9 million in capital credits to our members. Anyone with questions about their capital credit refund should call the cooperative at 800.222.3107 or learn more at: www.pemc.coop/capitalcredit
Piedmont Electric is a local, member-owned, not-for-profit electric cooperative serving more than 31,000 electric accounts in Alamance, Caswell, Durham, Granville, Orange and Person counties. Piedmont Electric exists to serve our members and improve the quality of life in our communities through local employment, economic development, business engagement, youth education, grants to educators, advocacy for energy issues, community involvement and emergency preparedness support. Visit www.pemc.coop for more information.
