What are capital credits?

Capital credits are the dollars left over after Pioneer Electric pays its own bills for doing business. Capital credits only exist if there has been more money taken in than is needed in running the co-op. Excess dollars are called margins. These margins are divided among the membership each year that there is excess margins and are assigned to each member’s capital credit account. When there’s not enough money to run the co-op, rates are raised to cover the additional costs. And likewise, when there are dollars left over after the bills are paid, those dollars become patronage capital, also called capital credits. How many capital credits a member is allocated is based upon how many kilowatt hours of electricity a member has used. Capital credits are assigned to a member’s account where they remain until the board deems the cooperative doesn’t need them to operate.

Is Pioneer Electric Cooperative audited?

Pioneer Electric undergoes an audit – a review of its books – each year by a certified, independent financial auditing firm. In addition, Pioneer’s banker also reviews the co-op’s books. Most importantly, Pioneer’s board (made up of nine Pioneer Electric members) reviews Pioneer’s financial reports monthly.