Pioneer Electric is proud to announce the retirement of $5.6 million to members in the form of capital credits checks. Pioneer Electric’s Board of Trustees approved the retirement during their September board meeting. Capital credits checks will be issued to members for service used in 2000 and 2023. Members will also receive generation and transmission capital credits for service used in 2012 and 2023.

Getting Your Check

Capital credits checks will be available for pick up at this year’s Member Appreciation celebration on Dec. 10 from 4-7 p.m. at the Grant County Civic Center in Ulysses. Members are invited to join us for an evening of community and free family fun. Attendees will have the opportunity to see Santa, pet reindeer, and enjoy a free chicken and noodles dinner!

Those looking to pick up their checks will be able to meet with Pioneer staff during the festivities. Please note, retired balances under $5 will not receive a check at this year’s celebration. These credits will be kept on file and a check will be available after a $5 minimum is met. Pioneer will mail all remaining capital credits checks following the event and will not hold them for members.

Questions regarding capital credits may be directed to 620-356-1211.

Common Questions

Q: WHAT IS THE DIFFERENCE BETWEEN ALLOCATED AND RETIRED CAPITAL CREDITS?

A: Allocated (or booked) capital credits are excess margins that are currently recorded on Pioneer Electric’s books. These margins, unless determined otherwise by the board, are generally allocated proportionally, each year, based upon the amount of electricity purchased by the member. These margins are then held until they are retired (or paid). As outlined in the member-approved bylaws, capital credits may be retired in the manner, method and timing determined by Pioneer’s Board of Trustees.

Q: WHY CAN’T MY CAPITAL CREDITS ALLOCATIONS BE REFUNDED TO ME ALL AT ONCE?

A: Retiring capital credits all at once would dramatically increase the cooperative’s borrowing cost and ultimately raise rates for members. In lieu of borrowing to meet all of its operating and capital project needs, accumulated capital credits allocations are used to partially fund long-term reliability improvements and maintenance. Each year, the board of trustees determines if the cooperative is financially able to pay prior years’ capital credits back to the members. When approved, the cooperative refunds capital credits to the members who used electricity during those designated years.