Baldwin EMC announced today that it has retired $2.2 million in capital credits from the years 1989, 1990 and 2013. These retired credits are being mailed to members beginning December 5.
Capital credits are a unique part of Baldwin EMC’s business structure. They represent the members’ investment in the cooperative, which provides an important source of equity for Baldwin EMC. This equity is used to help meet operational expenses and reducethe need to borrow money to run the business, which holds down rates.
Each year, Baldwin EMC’s board of trustees evaluates the financial condition of the cooperative. If that condition is favorable, the board may decide to retire a portion of the member equity, or capital credits, that have been held in reserve from past years. Refund checks are then issued to anyone who was a member in the years designated for retirement.
“Baldwin EMC is a cooperative, owned by its members. That means we don’t earn profits,” says Chief Executive Officer E.A. “Bucky” Jakins, Jr. “Every dollar we take in goes into the operations of the business. If we collect more revenue than we need, we have the privilege of refunding that to our members.”
Capital credit refund checks are being mailed this month to Baldwin EMC members from the years 1989, 1990 and 2013. Anyone who has questions about their refunds can call (251) 989-6247.