During 2007, People's Electric paid a total of $655,870.70 in gross receipts taxes to the 34 school districts in its service territory. Although People's Electric is a non-profit member-owned organization, which does not pay income taxes, it does pay gross receipts taxes which are, in turn, distributed to these school districts. These gross receipts taxes are paid in lieu of ad valorem taxes, and are assessed according to the number of miles of power line maintained by the cooperative within each school district.

Gross receipts taxes are paid throughout the year and then divided among the area school systems when the cooperative reports the miles of line and the percentage of People's Electric's total system which exists within each school district. (See the accompanying chart below which shows the 2007 distribution of gross receipts by school district.)

In addition to the gross receipts tax People's Electric pays to help support the schools, PEC pays federal income and excise taxes, Social Security, both state and federal unemployment taxes, franchise taxes and various other licenses and fees assigned by state and regulatory agencies.

2007 marked the 71^st year PEC has been providing electrical service and financial support through Gross Receipts taxes to school districts in Pontotoc, Hughes, Seminole, Pittsburg, Coal, Johnston, Murray, Garvin, and McClain Counties.

The accompanying chart details these school systems and the amounts each received from PEC's gross receipts taxes in 2007.