MONROE,
Ga. -- Over 91,000 consumer-owners of Walton Electric Membership
Corporation (EMC) will take part in the cooperative's largest
refund ever this December.
The refund will appear as a credit on most consumers' electric
bills, saving $30,000 in check production and mailing costs.
The average refund is $17. Each consumer's refund is based
on the amount of his or her electric bills.
Since Walton EMC's consumers own the company, it doesn't make
sense to show a profit. A small portion of every dollar consumers
spend for electric service is credited to their margins account.
Margins are what's left over after Walton EMC pays all the
bills for its operating expenses.
"Why
does Walton EMC need margins if it doesn't make sense to show
a profit? It's the same reason we all need reserve funds-to
be prepared for emergencies; to help pay down debt; and to
make major purchases," explains CEO Ronnie Lee. "But when
those margin reserves grow to more than what's needed for
a safe financial cushion, Walton EMC returns the extxtra."
That's why the cooperative's board of directors (composed
of 10 Walton EMC consumers) voted to refund $3 million this
December in the latest refund. The 2003 refund brings the
total returned to $19 million over the last 16 years.
Lower than expected wholesale power costs and interest expense
account for the size of this year's refund.
This year's refund includes those who received electric service
from Walton EMC during 1981 and/or 2002. Older margins are
retired on a continuing basis; margins up to 1981 have already
been distributed.
A portion from the most current year is included in the distribution
so most consumers can take part in the refund. Accountants
call this a combination of "first in first out" and "last
in first out" methods.
Walton EMC is a consumer-owned electric company and serves
105,000 electric accounts in ten Northeast Georgia counties
between Atlanta and Athens.
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