At the close of each business year, PSREC determines its net profits or margins. That amount is allocated to each member based on how much electricity they purchased compared to the total purchased by all members.
Example of how to determine net profits:
- $500,000 (year-end margin of 5%)
- $10,000,000 (total electric revenue)
If a member bought $1,000 worth of electricity, their allocation would be $50.00 (5% × $1,000).
This allocation is:
- Added to previous years’ allocations to form the accumulated total
- Reduced by any prior retirements/refunds
- Used as the basis for payment when the Board of Directors announces a capital credit refund