Tuesday, December 17, 2013
Wauchula, Fla. — The Board of Directors of Peace River Electric Cooperative (PRECO), Wauchula, FL, has authorized the release of more than $506,000 in capital credits payments to approximately 9,000 consumer-members this month. Members who purchased electricity from the co-op during 1993 are receiving checks in the mail now.
Unlike other utilities, electric cooperatives are owned by the same individuals they serve. Every consumer has ownership in a portion of the business. And one benefit of that membership involves the allocation of excess revenue, called margins, in the form of capital credits. Therefore, when the co-op’s financial position permits, the co-op pays out capital credits to members.
“Sound financial management by the Board of Directors has made it possible for our members to receive these refund checks,” shares Randy Shaw, CEO of PRECO. “As a not-for-profit electric cooperative, our members benefit when our annual costs to provide electric service are less than the monies collected.”
PRECO’s board of directors is responsible for determining when and how much of these capital credits can be returned annually. Their decision is influenced by the financial condition of the cooperative, the amount of growth and expansion of power lines, short- and long-term loan responsibilities and other factors. In addition, the board must hold margins in reserve for a period to cover emergencies, such as hurricanes, and to expand the electric system as needed due to growth.
Over the last 10 years, PRECO has returned nearly $6.3 million to its consumer-members in the form of capital credits checks.
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Peace River Electric Cooperative (PRECO), a Touchstone Energy® distribution electric cooperative headquartered in Wauchula, Florida, provides electric service and energy solutions to more than 35,000 member/consumers in 10 Florida counties in central Florida: Brevard, DeSoto, Hardee, Highlands, Hillsborough, Indian River, Manatee, Osceola, Polk and Sarasota Counties. Through almost 4,000 miles of power lines, the electric cooperative has been in business since 1940 as a member-owned, not-for-profit organization.
Peace River Electric Cooperative, Inc.
210 Metheny Road, Wauchula, FL 33873-1310
Office: 863.767.4644 website: www.preco.coop