Capital Credits

Capital Credits Payment: $2.2 MILLION coming back to members in December 2020

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. This month, we are paying out $2.2 MILLION to our members!

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, because we know many members need the extra cash during the holiday season. 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. This is why it’s important to keep your address with us updated, even after you move, so we can always mail you your due money.

What is PPEC’s policy on Capital Credits?



 2020 News Release, sent 12-7-2020:    

Paulding Putnam Electric Cooperative (PPEC) returns $2.2 MILLION to Members

Paulding, OHPaulding Putnam Electric (PPEC) members will see a lower electric bill around the holidays. That’s because PPEC’s Board of Trustees recently approved to return $2.2 million to the cooperative’s current and former members. Eligible members will see a credit on their December electric 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, community-focused organization. One of PPEC’s 7 Cooperative Principles is “Members’ Economic Participation,” which means members contribute equitably to the capital of the co-op in which they are part-owners. The unique part of the co-op model means members also receive a financial return on their capital.

“Simply put, this means that PPEC members contribute a portion of the capital necessary to grow the co-op and upgrade electric reliability,” stated PPEC President and CEO George Carter. “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.”

Including this year’s capital credits return, PPEC has returned more than $27 million to its members. According to Carter, this process is what sets PPEC apart from other utilities.

“We’re not in business to make a profit for shareholders – we don’t have any because of our co-op model,” Carter said. “If there is leftover 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 – especially this year with many members struggling due to COVID-19.”

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

Paulding Putnam Electric Cooperative 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 or follow the community cooperative on Facebook, Instagram, YouTube, or Twitter.


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