Sawnee Electric Members to Receive $4.7 Million Refund

Membership Corporation (Sawnee EMC) announced on Friday, Jan. 20 that it is planning to give back more than $4.7 million in refunds of patronage capital to eligible members, according to a news release.

The multi-million dollar refund is through a general retirement of patronage capital from 1988 to 1989. Customers who were members and received service during that time frame will be eligible to receive a refund.

The average refund will be about $120.00, but each individual refund will vary based on the amount of patronage capital contributed by the member during 1988 and/or 1989, the news release stated.

This refund represents the patronage capital that was assigned to their account, less any amount that might be owed to Sawnee EMC.

"It is important for Sawnee EMC to demonstrate, through this and many other actions, that the cooperative business model works for our members and our organization," said Sawnee President and CEO Michael Goodroe.

Because Sawnee EMC is a non-profit electric cooperative, each year the members receive an assignment of “patronage capital” in the records of the cooperative based on the amount of capital they provided the cooperative through their electric bill. This is defined in the bylaws as an allocation of the revenue in excess of operating costs.

It should be noted that Georgia law requires the collection of patronage capital. Sawnee EMC returns these funds to the members when the Board of Directors determines that doing so will not impair the cooperative’s financial condition.

For current members of Sawnee EMC, a credit will be placed on their March 2012 electric bill. Former qualifying members, who no longer receive electric service from Sawnee EMC, will be mailed a check to their last known address on or around March 16, 2012.

This is not the only refund of patronage capital made by Sawnee throughout the year. During the past 12 months, Sawnee EMC made more than $167,000 in refunds to estates of deceased members.

"Sawnee EMC refunds patronage capital on demand each month to the estates of deceased members," said Blake House, vice president of Marketing and Member Services.

Executors of estates of former Sawnee EMC members should contact the Customer Service Center (770-887-2363) to find out if their family member’s estate is entitled to a patronage capital refund.