Sawnee Electric Membership Corporation (Sawnee EMC) announced today that it is preparing to return approximately $10 million, to over 114,700 eligible current and former members, through a general retirement of patronage capital. This includes the balance of those funds assigned for the year 2002, and a portion of the funds assigned for 2003. This action will provide funds to individuals and businesses who were members of the cooperative and received electric service from Sawnee EMC at any time during 2002 or 2003.
Because Sawnee EMC is a not-for-profit electric cooperative, each year its members receive an assignment of what is called “patronage capital” in the records of the Cooperative. Each member’s assignment is based on the amount of revenue they provided the Cooperative through their electric bills during a particular year.
Patronage capital is defined in Sawnee’s Bylaws as an “allocation of the revenue in excess of operating costs and expenses” and is required by Georgia law. Sawnee EMC’s Board of Directors regularly considers the retirement of patronage capital to its members for certain periods and certain events. The Board approves a retirement after it determines that doing so will not impair Sawnee’s overall financial position.
All members who received electric service from Sawnee EMC at any time during 2002 or 2003 are eligible to receive an allocated portion of this general patronage capital retirement.
Approximately $10 million will be distributed to these members, with the average refund being about $87.11. It should be noted that each member’s refund will vary based on the amount of revenue they contributed to the cooperative via their power bills during 2002 or 2003.
Existing Sawnee EMC members, who received electrical service from Sawnee EMC during this period will receive their patronage capital retirement in the form of a credit on their March 2, 2020 electric bill. Former members who no longer have an active account with Sawnee, and have a valid forwarding address on file, will be mailed a check to their last known address on or around April 6, 2020.
“It is important for us to demonstrate through this, and many other actions, that the cooperative business model still works for our members and our organization,” said Michael Goodroe, Sawnee EMC’s President and CEO.
This is not the only retirement of patronage capital made by Sawnee EMC throughout the year.
“Sawnee also retires patronage capital, on a voluntary basis, to the estates of deceased members,” said Blake House, Vice President of Member Services.
During the past 12 months, Sawnee EMC has issued approximately $457,725 in patronage capital retirements to the estates of 406 deceased members.
Executors of the estates of deceased members who have not yet received their refund, should contact Sawnee’s Customer Service Center at (770) 887-2363 or by email at firstname.lastname@example.org, to find out if their family member’s estate could potentially qualify for a voluntary early retirement of patronage capital.
For additional information about this general retirement of patronage capital, please call Sawnee’s Customer Service Department at (770) 887-2363, send an email to email@example.com or visit www.sawnee.com/patronage-capital to watch our short informational video.