The holiday season is upon us and with it we reflect on all that we are thankful for. As a cooperative, Pioneer Electric believes in giving back to the ones who power us – our members. Because Pioneer Electric operates at cost, we return funds to our members rather than distributing them to outside investors or shareholders. This year, Pioneer Electric is proud to announce the retirement of $5.7 million in capital credits. Members will receive capital credits from Pioneer Electric for service in 2000 and 2024 and Sunflower Electric Power Corporation for service from 2012 and 2024.b v
How capital credits work:
Each month, our members are billed for the electricity they use, and the costs associated with getting that power to their home, farm or business. We keep record of each member’s patronage and as Pioneer Electric pays all operating expenses for the year any leftover operating revenue is allocated as capital credits. When financial conditions permit, the co-op’s board of directors votes to return a portion of these capital credits back to contributing members. Pioneer Electric utilizes a hybrid method that splits retirement between the current year (25% of the total amount) and the oldest year (75% of the total amount) on record.
Not only do members receive capital credits from us but they may also receive capital credits from Sunflower Electric Power Corporation, our generation and transmission provider. Sunflower is also a cooperative, of which Pioneer Electric is a member, and retires its capital back to its members.
In the past, members were able to collect their capital credit checks at Pioneer Electric’s Member Appreciation Event in December. To expedite the delivery of capital credit checks to members, Pioneer Electric will mail the checks in November. As a reminder, Pioneer Electric will not issue capital credit checks for amounts lower than $5. Those amounts will be held in the members’ account until they exceed $5.
Members Matter
Capital credits are just one of the many benefits of co-op membership. Giving back to our local members, rather than relying on outside parties, is one of the many aspects that set cooperatives apart from other types of businesses. Our members guide every decision we make and are the reason our co-op exists. To us, you’re more than a customer. This holiday season, we hope you’re proud to be part of a community-focused co-op that puts people before profits.