Capital Credits

 capital credits website banner 2016-1

Capital Credit Refund

One of the major benefits of being a cooperative member is the receipt of capital credits, which is like money back from your power company.

Here’s how it works: money remaining after Paulding Putnam’s bills are paid each year is known as margins (it is the margin between income and expenses). This money is used for capital expenditures, such as building or replacing lines, and is not paid back immediately. This becomes your investment or equity in the company. In a for-profit company, this money would be called profit. To be a true nonprofit cooperative, we believe this money should be returned to you–we call it capital credits.

We keep track of your capital credits in a special account. You receive a notice each year telling how much money from the previous calendar year’s margins was allocated to your account. This is money we will eventually refund to you or your estate. The amount of patronage capital allocated to your account is in proportion to the dollar amount of electricity you used. In other words, if you paid for 1 percent of the power we sold, you would receive a 1 percent share of the margins left over at the end of the year. If a member passes away, we pay all capital credits at its net present value.

When will I get my capital credits?

Capital Credits usually are issued or returned to you in December. If you are a current Member, you will see this as a credit on your energy bill. If you are a past member who is owed a capital credit, you also will receive this refund.

What is the PPEC’s policy on Capital Credits?


Do you have a brochure about Capital Credits? 




 News Release:

     Paulding Putnam Electric Cooperative (PPEC) to Give $1.4 Million Back To Members

Paulding, OH – (12-08-17) Paulding Putnam Electric Members will see a lower electric bill around the holidays. That’s because Paulding Putnam Electric Cooperative’s Board of Trustees recently approved to return $1.4 million to the Cooperative’s members. Members will be seeing a credit on their December bill. The money is being returned to members in the form of capital credits, also known as profits or margins.

PPEC is a not for profit co-op, and one of the 7 cooperative principles is Members’ Economic Participation, which means members contribute equitably to the capital of the co-op. “Simply put, this means that PPEC members contribute a portion of the capital necessary to grow the co-op.  Eventually, as the co-op is financially able to do so, the board approves the capital be returned, or “retired” back to those members who contributed it originally,” stated Pres./CEO of PPEC, George Carter.

Including this year’s capital credit return, Paulding Putnam Electric has returned just over $20 million to its members. According to Carter, this process is what sets them apart from other utilities. “We’re not in business to make a profit for shareholders. If there is left over money, we give it back to members. We return the money to members around the holidays because that’s when many people need it the most.”

Paulding Putnam Electric is a member-owned electric utility serving over 12,900 member-owners in Paulding, Putnam, Defiance, Van Wert and Allen counties in Ohio, and Adams and Allen counties in Indiana. For more information visit us on the web at or follow us on Twitter or Facebook.

Anyone with questions about their capital credit refund should call PPEC at 1-800-686-2357


Pin It on Pinterest