Capital Credits

People’s Energy Cooperative returns Capital Credits to members as part of its not-for-profit business model. When revenues exceed expenses, the Cooperative allocates margins back to members, reflecting their ownership in the organization.

Helpful Definitions

Basic Information

What you should do...

Questions & Answers

People's Energy Cooperative is a not-for-profit, member-owned, electric utility.

Abiding by one of the Cooperative's Seven Principles: Member Economic Participation, the Board of Directors determines the retirement of capital credits to its members, based on the Cooperative's financial stability. PEC has retired over $18.3 million in capital credits and over $8.9 million in Dairyland Power Cooperative and SMEC capital credits to members since 1958.

Capital Credits are just one of many differences that set cooperatives apart from other utility business models.

Basic Information

When the Cooperative develops a budget each year, we plan to bring in slightly more revenue than we spend to be fiscally responsible. These margins are then returned to members as capital credits. That means you, not a group of private investors, benefit from any margins produced by the Cooperative. Each month, your electric bill covers the cost of your electricity and the day-to-day operating costs and margins associated with maintaining a safe and reliable system.

Operating margins left over at the end of the year are allocated, or assigned, to a capital credit account in your name based on the amount of energy you purchased (patronage).

Your capital credit account, similar to a savings account, is the accumulation of margins which have been allocated to you each year based on your patronage.

Each year, the Board of Directors determines if capital credits will be retired. Retirements of these capital credits can come in different forms. If you are an active member, you will receive a credit on your bill (if under $300) or a check (if over $300). For former (inactive) members, a check will be sent if the amount is over $25. Refer to the “What you should do…” section for information on what happens when you are no longer a member of the Cooperative.

What you should do...

For inactive electric accounts, you must provide a copy of the death certificate along with either legal documentation from the estate or a completed Affidavit for Collection of Personal Property provided by the Cooperative.

For active electric accounts, the account must first be closed out and paid in full. Contact the Cooperative for further details.

Upon request, capital credits may be retired to an estate based on present value.

Additional Questions & Answers

Active members whose capital credit retirement amount is below $300 will receive a credit on their bill. Inactive members receive a check when the capital credit retirement amount is $25 or more. If a non-active member does not accumulate a retirement of at least $25 in a year, the system will continue to add the retirement amounts together each year until the amount is over $25 and then a check will be issued. If a non-active member is receiving their final payment, it may be less than $25.

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Even if someone has moved off cooperative lines, they may be eligible to receive Capital Credits. Every year, refund checks are mailed to former members at their last address on file at People's Energy Cooperative.

With every mailing, the U.S. Postal Service returns some of those checks as undeliverable. Sometimes, these refund check are never cashed.

To see a list of member checks that have been returned as undeliverable or were uncashed, please click below.

2025 Full Unclaimed Properties List

People on the list can claim their Capital Credits funds by calling our office at (800) 214-2694 or filling out the form below.

Scholarship Application Available:

Capital Credits

People's Energy Cooperative is a not-for-profit, member-owned, electric utility.

Helpful Definitions

Basic Information

What you should do...

Additional Questions & Answers

Do you know anyone on this list?

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CONTACT US

Scholarship Application Available:

People's Energy Cooperative is a not-for-profit, member-owned, electric utility.

Helpful Definitions

Member

Operating Costs

Margins

Allocation

Patronage

Retirement

Basic Information

What are Capital Credits and where do they come from?

How are they allocated and retired?

What you should do...

... if you move.

... when someone dies.

Additional Questions & Answers

How often are Capital Credits paid out?

What sort of schedule dictates the payout of these credits?

Why don't I get a check each year?

Are capital credits taxable?

Can I donate my outstanding Capital Credits?

Do you know anyone on this list?