Title
Resolution - Proposal for Approval of Allocation of 2023 Net Margins to Capital Credits - J Smith/K Jones
Other Info
Submitted By: Janelle Smith
Department: Chief Financial Officer
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 non-operating margins and changes in accrued (unbilled) 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, 2023, in the amount of $56,101,458 adjusted for an unbilled revenue amount of ($2,448,516) and adjusted for non-operating margins not related to providing electric services of ($875,425) be approved for member allocation. This amount of $52,777,517 shall be allocated first to revenue class based on contribution to gross margin and then second based on total gross electric billings for the calendar year 2023 to those patrons having positive billing amounts during the year within each class. The allocation factors calculated for 2023 are Residential 0.0666071385, Small Power 0.0682412556, Large Power 0.0424502211, Industrial 0.0044622885, and Transmission Level Service 0.0050844041.
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.