December 2007

Walton EMC Truly Provides Service at Cost

This month's refund again  proves the point

I hope you’ll look at this month’s power bill extra carefully.

A message from CEO Ronnie Lee

That’s because most of you will receive a credit. That credit is your part of a $3 million refund to Walton EMC customer-owners.

Our board of directors, fellow customer-owners that represent your interests in running the co-op, voted earlier in the year to make this refund. I’ll answer a few common questions you may have.

Q:  Will I get a refund?

A:  If you had electric service with Walton EMC in 1983, 1984 or 2006, you’re included. In accounting jargon, this is a combination of first-in, first-out and last-in first-out disbursement. We do this so most customer-owners can take part in the refund.

Q:  How much will my refund be?

A:  It depends on how much your power bill was in the years included in the refund. The refund is proportional to the amount you paid.

Q:  When will I get my refund?

A:  This month.

Q:  How will I get my refund?

A:  It appears as a credit on your power bill. This saves time, money and paper over writing individual checks. In a few instances, customer-owners may receive a check.

Q:  Why am I getting a refund?

A:  In simple terms, it’s part of the difference in what we took in and what it cost to do business.

Walton EMC is a cooperative–the customers who receive electric power from us are the owners of the business. That’s why it doesn’t make sense to show a profit.

Q:  If this refund is part of the difference, what do you do with the rest?

A:  We use the rest of these funds to retire debt, build equity and prepare for emergencies, like a big ice storm. Your part of these funds is assigned to your capital credit account to reflect your ownership of the co-op.

As a co-op, Walton EMC operates under a set of seven basic principles. One of those principles is member economic participation.

<back>