Cooperatives operate under law, regulations, and rules as other businesses do and they are incorporated as other businesses are. Cooperatives are different in the aspect that any profits or margins are returned to the customers/members.

People's Cooperative Services is operated as a nonprofit company. This means that all money that is left over after the cost of providing electric service is allocated each year to the members in the form of capital credits.

The capital credit program invests the profits or margins into the facility to provide continued electric service until they are refunded to the members, as financial conditions permit.

People's Cooperative Services is currently on a combination 20-year FIFO (first-in first-out) refund cycle with an additional Board authorized dollar amount paid as a percentage over the next 16 years after your first three initial years of service. Meaning those members that have been members of People's Cooperative Services the longest will be the first to receive their capital credits when the Board of Directors authorizes their payment.

All the cooperative's allocations or margins are based on the member's amount of electric energy purchased from the Cooperative on an annual basis.

With the membership receiving electricity at the cost of service, receiving equal ownership, and having direct input into the decision making process of the company—cooperatives are the most democratic form of free enterprise in the country.