What are Capital Credits?

As a member of an electric cooperative, you invest in PenTex Energy through your patronage (kilowatt-hour purchases). Each year, any margins (excess revenue) earned by PenTex Energy are reinvested in the cooperative. At the same time, the value of these margins is proportionally allocated (based on electric purchases during the year) and recorded to capital credit accounts for each of our members. These accounts are maintained until the capital credits are retired (paid) in full to our members.

How do Capital Credits work?

  1. Operating revenues are generated monthly from members' electric bill payments. Included in each payment is your contribution to the day-to-day operation costs of PenTex Energy.

  2. This money is invested in the equipment and labor (operating expenses) needed to meet the current and growing demand for electricity and to improve and maintain the distribution system. Members can think of this as their equity investment in the cooperative.

  3. Each year, annual margins (excess revenue) from the previous year are allocated proportionally among PenTex Energy’s members based on their annual patronage. PenTex Energy maintains capital credit accounts for each member until the credits are retired (paid) in full.

  4. Your Board of Directors reviews the cooperative’s finances, and when financial conditions permit, the Board may retire (pay) a portion of the capital credits to our members based on their allocated share.

What is the difference between Capital Credit Allocations and Retirements?

Allocations are the process of recording your share of the cooperative's margins (excess revenue) in your capital credit account. Retirements are the payout of those recorded capital credits when the cooperative's financial situation permits.

Unclaimed Capital Credit Account

Any person with an interest in an unclaimed capital credit account may obtain information from PenTex Energy to claim the account. Individuals with an unclaimed request can fill out this Unclaimed Capital Credit Account form and submit the original notarized form to the address listed on the form. Additional required documentation is as follows:
 

  • If there has been a legal name change, additional documentation must be submitted with the claim form. Examples of acceptable documentation are:

    • Marriage license

    • Court order changing an individual’s name

    • Divorce decree showing the restoration of maiden name

    • Claimant’s driver’s license or government-issued I.D.
       

  • If there has been a death of the account holder:

    • Death certificate

    • Letter of testamentary or other legal documents showing the name of the executor of the estate of the deceased

    • Birth certificate

    • Claimant’s driver’s license or government-issued I.D.
       

  • If the account holder of the unclaimed capital credit account is a business:

    • The full federal tax identification number of the business

    • Legal documentation establishing that the requester is authorized to collect or release interest in the unclaimed account on behalf of the company (e.g., dissolution or ownership documents)
       

Want to donate your Capital Credits?

PenTex Energy members have the option to donate their capital credit allocations. Contact our office to learn more or complete an Election to Donate Capital Credits form.

Capital Credit FAQs

A. Brazos is a cooperative owned by PenTex Energy along with other electric cooperatives in North and Central Texas. Just as PenTex Energy allocates margins to our members, Brazos allocates its margins to the electric cooperatives that own Brazos. When PenTex Energy receives margin allocations from Brazos, those margins are allocated to PenTex Energy members. These allocations are kept separate from the PenTex Energy margin allocations. When PenTex Energy receives payment from Brazos to retire any portion of the Brazos allocations, these allocations are retired and paid to our members.

A. Capital credits are retired (paid) at the discretion of the PenTex Energy Board of Directors. The decision to retire is analyzed annually based on the financial outlook of the cooperative. Should the Board of Directors elect to retire capital credits, checks are typically issued during the month of November and mailed to our members. 

A. Once you terminate service, you will no longer receive additional allocations. Your existing capital credit balance will be maintained in the same account in your name until it is retired (paid) in full. When the PenTex Energy Board of Directors elects to retire (pay) capital credits in the future, a check will be mailed to the last forwarding address on record. It is the member’s responsibility to maintain a correct mailing address with PenTex Energy for the receipt of any future payments or information concerning capital credits. To update your address, please email us at msr@pentex.com or call our office at 940-759-2211.

A. If you receive a capital credit check that isn't yours, please write "Return to Sender" on the envelope and mail it back to the cooperative. This will ensure no future checks for that account are mailed to your address. PenTex Energy sends capital credit checks to the last known address for an account and sometimes the address on file has not been updated by the member.

A. Fill out this Unclaimed Capital Credit Account form and submit the original notarized form to the address listed on the form. Please include a copy of a valid photo ID. Also, please visit www.claimittexas.gov to claim any funds that may have been escheated to the State.

A. Members should reach out to PenTex Energy at msr@pentex.com or call 940-759-2211 to request that a check be reissued.

A. Please contact our office for further information, or have your bank contact us.