Most people pay an electric bill and never think twice about where the money goes. At Piedmont Electric, it is worth a second thought, because you are not a customer here; you’re an owner. And every year, your ownership can come back to you in the form of capital credits.
What We Do With Profits
Piedmont Electric is a not-for-profit cooperative, so we do not earn profits the way a typical company does. Any margins, the revenue left after all of our expenses are paid, belong to you and your fellow members. We assign each member a share of those margins based on how much electricity you purchased during the year. That share is your capital credit, and it represents your stake in the cooperative’s success.
Allocated vs. Retired
Your capital credits move through two stages.
- Allocation: Each year the co-op posts margins, your share is recorded on our books in your name. Think of it as your ownership equity in the cooperative.
- Retirement: That is when those credits come back to you as money. In the years between, the co-op puts those funds to work doing things like maintaining power lines and building new infrastructure, which means we borrow less and keep costs down for everyone. Our board of directors decides each year how much to pay back and from which years, which is why there is usually a gap between when you earn a credit and when you receive it.
How and When You Get Yours
Watch your account each December. That is when Piedmont Electric returns capital credits to members. If your credit is less than $75, it shows up as a credit on your electric bill. If it is $75 or more, we mail you a check. Either way, we will notify you any year you have a retirement coming.
The Cooperative Difference
This is what sets a co-op apart from a traditional utility. An investor-owned company sends its profits to shareholders who may live nowhere near you. Here, the money circles back to the members and the community it came from. Since 1975, Piedmont Electric has returned more than $35.8 million to the members who own this cooperative.
Keep Your Share Within Reach
Two quick things protect what is yours:
- Keep your contact information current. If you ever move, update your address through SmartHub or by calling 222.3107 so a future check never goes astray. And if you know someone who moved out of our service area, they may have unclaimed credits waiting at pemc.coop/capital-credits.
- Name a beneficiary. You can designate who receives your capital credits, so your share passes directly to someone you choose. Get started at pemc.coop/beneficiary.