Baldwin EMC Issues Capital Credits Checks
December 10, 2010
Baldwin EMC refunded $2.2 million this month in capital credits to those who were members of the cooperative in 1987, 2006 or 2007. Capital credits refer to any income above and beyond the normal cost of doing business for Baldwin EMC, which sets its rates to bring in enough money to pay operating costs, make payments on any loans, and to provide an emergency reserve.
Capital credit checks were mailed the week of Dec. 7, 2010. If you were a member of Baldwin EMC during one of those three years, part of that $2.2 million may have your name on it. The amount was based on how much electricity you used that year.
"Capital credits are one of the many benefits of belonging to a cooperative," says Baldwin EMC Chief Executive Officer E.A. "Bucky" Jakins, Jr., "Baldwin EMC is a not-for-profit business. We exist only to provide goods and services to our members - not to make a profit for a shareholder or investor."
According to Jakins, it isn't always possible to return capital credits to members. If the cooperative has a year with extenuating expenses like storm damage, the margins must be used for operating capital to keep the co-op financially strong and maintain reliability. "However, due to the co-op's fiscal responsibility, BEMC has been able to return capital credits this year, something we always look forward to doing," Jakins says.