The methods used by the Pedernales Electric Cooperative, Inc. (PEC) to distribute capital credits to members do not result in honest distributions both among and within rate classes. The method used by the PEC for the years 2007-2018 for distributions among rate classes cheats mostly the Residential rate class out of its rightful, earned share. That method was corrected for the years 2019-2021. However, the method used to distribute capital credits within rate classes for the years 2007-2021 cheats small users out of their rightful, earned shares mostly in the Residential and Small Power rate classes. Small amounts of earned capital credits are taken from the many small users and given to the few large users. One wonders why the PEC continues these dishonest distributions.
Mr. Merle L. Moden