Title
Resolution - Proposal for Approval for Allocation of 2020 Net Margins to Capital Credits - R Kruger
Other Info
Submitted By: Robyn Miller on behalf of Randy Kruger
Department: Financial Services
Financial Impact and Cost/Benefit Considerations: None
Discussion
Under PEC’s governing documents and the Capital Credits Policy, each Member purchasing electricity from the Cooperative will receive an allocation of the net margins as adjusted for the net change in accrued revenue, made by the Cooperative during the fiscal year. The Board is responsible for approval of an allocation of capital credits. The Board may now consider approval of allocation of Capital Credits and the allocation factor.
Body
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that net margins shown in the Cooperative's Audited Financial Statements for the year ended December 31, 2020, in the amount of $33,800,592 adjusted for an unbilled revenue amount of ($4,014,949) and adjusted for non-operating margins not related to providing electric services of $817,083 be approved for member allocation. This amount of $36,998,458 shall be allocated first to revenue class on the basis on contribution to gross margin and then second on the basis of total gross electric billings for the calendar year 2020 to those patrons having positive billing amounts during the year within each class. The allocation factors calculated for 2020 are Residential 0.0622219741, Small Power 0.0597313457, Large Power 0.0390847328, Industrial 0.0046073492, Public Authorities 0.0307977696, and Transmission Light and Power 0.0020271800.
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the Chief Executive Officer or designee is authorized to take such actions as needed to implement this resolution.