Historically we have received many questions annually about Lease Payments, which are a component on the monthly bill for electric accounts in the communities of Clarks, Osceola, Shelby, or Silver Creek. The Lease Payment collects 12% of electric, demand, and customer charges on the monthly billing and is returned quarterly to the town where the electric account is located.
The Lease Payment is a component of our Professional Retail Operations Agreement (PRO) with the City or Village who owns the electric distribution system for the community. The PRO Agreement allows PCRPPD to operate the community’s electric system. Per the PRO Agreement, PCRPPD improves and maintains the electric distribution system at no cost to the City or Village. PCRPPD returns 100% of the lease payments collected from PCRPPD customers to the City or Village to be used at their discretion. Lease payment rates are set by the City or Village.
Also, per State Statute, PCRPPD collects a 5% Gross Revenue Tax that is returned to the county in lieu of a property tax on the electric distribution system for the City or Village. The 5% Gross Revenue Tax is calculated from the total of the electric, demand, customer, and lease agreement charges. This tax is paid annually to the County Treasurer and redistributed proportionally based on the mill levy of the taxing authorities.