Your slice of the pie
PVREA is a not-for-profit electric co-op and we belong to the communities 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 member credits - paid directly to our members by a check in the mail or as a bill credit.
2019 Member Credits
In 2019, the Co-op is paying $3.2 million in member credits to members who received service from PVREA for the years 1993, 2004, and 2018 or any combination of those years. In September 2019, current and previous members during the years mentioned above, and who had built up to at least $10 worth of member credits, will receive their credits either on their September bill as a credit or will receive a check in the mail if the credit amount is over $100.
In previous years, the Co-op issued member credits by mailing checks. The Co-op now pays member credits under $100 as a bill credit to save the Co-op on printing, postage and administrative costs. This is just one of the ways the Co-op is working to control costs and save money to keep rates affordable – which is one of the ways PVREA was able to hold the line on rates and not have any rate increases since 2017!
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 Co-op’s electric system based on your electric consumption. This allocation amount is notified to members on bills every year.
Retirement. Every year the Board takes a hard look at the operation, and decides if a member credit payout or "retirement" is feasible. If they decide to retire member credits, the money is paid out or “retired” from each member’s account, based on their past allocations. The credits members receive are tangible evidence of each member’s investment into the co-op.
For any tax questions regarding your member credits, please refer to your tax advisor.