What is NPVD and what does it represent?

NPVD is an acronym for Net Present Value Differential or Discount.  This is the difference between the total amount of capital credits retired and the amount actually distributed by check or applied to your Pioneer Communications account. It represents the net present value discount amount for the time value of money retired. In other words, this equates a dollar being retired today to the value of a dollar retired in the future, typically 20 to 25 years in the future.

This amount is not held in an account, but is reinvested to support operating activities, growth and capital investment. The discounted amount of the NPVD is tracked and accumulated annually by the Cooperative for each member. This amount will be used, in combination with any current outstanding patronage balance, to determine each member’s relative ownership percentage in the Cooperative as of the dissolution date. That percentage will then be used to determine each member’s share of the net remaining assets that will be distributed upon dissolution of the Cooperative.

December 12th, 2017|