How does the balance in my equity ownership/capital credit account accumulate?
At the close of each business year, the net profits or margins of PSREC are determined. This amount is spread or allocated to each member based upon the amount of electricity purchased by the member as compared to the total amount purchased by all members. Example of how to determine net profits: $500,000 (year-end margins) = 5% $10,000,000 (total electric revenue) Continuing with our example, if an individual member bought $1,000 worth of electricity, their allocation amount for that year would be $50.00 (5% net profit X $1,000). The allocation amount would then be added to all of the allocations from the previous years to arrive at the accumulated total. This total, less previous retirements/refunds, is used as the basis for the amount to be paid when the Board of Directors announces that a capital credit refund will be distributed. Return to top How is my equity ownership paid out? Whether or not your equity ownership (capital credits) is returned to you, and how much is returned, i
