March 2007

Unregulated?

Walton EMC guided by the ultimate regulatory body

“Walton EMC has an unfair advantage since it’s not regulated.”

“Why are other utilities regulated and you’re not?”

From time to time we hear comments like these. If you take them at face value, it would seem Walton EMC is free to do whatever it wants, with no oversight from anyone.

Nothing could be further from the truth. As a matter of fact, we’re controlled by the ultimate regulatory body–our customers.

Walton EMC is a cooperative business. You paid a $5 membership fee to join the co-op when you applied for service (which is refundable if you ever move off our system).

A cooperative is a business formed and owned by those who can use its services. Anyone who needs Walton EMC’s services can join the co-op. Membership is open and non-discriminatory.

Sometimes cooperatives come into being when the free market fails. In our case, investor-owned utilities saw our territory as unprofitable and would not extend their power lines out of the big cities.

So citizens of our communities banded together and started their own electric company.

Each customer is an equal owner, no matter how much or how little electricity they buy. And every customer has the same voting power, making our company a true democracy.

Your fellow customer-owners set policy and oversee the business on your behalf. You elect these board members at our annual meeting, held every third Saturday in June. The fellow customer-owners who make up the board are directly accountable to you.

Walton EMC is just like any other private business. It’s just that we have many owners rather than one. Those owners are you.

EMC Myths Debunked

Myth –EMCs are not regulated.

Fact–EMCs are regulated by their customers, who are also their owners.

Myth–EMCs do not pay taxes.

Fact–Walton EMC pays millions of dollars in taxes, including property taxes, ad valorem taxes and sales taxes. The only reason we don’t pay income tax is because we return any margins back to our customers.

Myth–EMCs receive government subsidies.

Fact–Walton EMC does not receive any government loans or subsidies. We borrow money on the open market, just as any other business would.

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