The Pioneer Electric Board of Trustees is proud to announce that the cooperative will return $4 million back ($1.8 million from Pioneer Electric and $2.2 million from Sunflower Electric) to its members in the form of capital credit checks. Members of the board met in September to discuss the retirement of funds allocated earlier this year.
Each year, the cooperative allocates (or sets aside) a portion of a member’s patronage (the amount of electricity purchased) that is in excess of operating expenses. These funds are kept on Pioneer books until such time it is retired (or paid) by the cooperative. For Pioneer, this retirement is done through a “hybrid” plan where a percentage of retirements are from the current year and the balance is from the oldest years on record.
Before retiring the patronage, the Board of Trustees and Management evaluate the current state of the cooperative. Provided a retirement will not impair Pioneer Electric, the Board then votes on whether to retire (or pay) this allocated (or set aside) patronage. If approved, the cooperative will return the accumulated credits back to members at the Member Appreciation Days in December.
2018 will be the first year in which members will also receive retired capital from Sunflower Electric Power Corporation. Sunflower is Pioneer Electric’s wholesale power provider and is, in itself, a generation and transmission (or G&T) cooperative. Much like Pioneer, Sunflower may also retire past allocations back to its members, to include Pioneer; who will in return pass these along to its members. The Sunflower Board of Trustees approves the retirement of these G&T capital credits based on its review of Sunflower’s equity position and financial health.
Capital credit checks will be available for members to pick up during Member Appreciation Days (Dec. 4-6). Please note that Pioneer Electric will NOT distribute checks to members prior to the celebration. Checks not picked up during the event will be mailed on Dec. 7.