What is a margin refund?
Margin refunds are revenues – left over at the end of the year after expenses are paid – that are returned to members of not-for-profit cooperatives, like Jackson EMC.
Each year, revenues left over after the cost of providing electricity are used by Jackson EMC to improve its distribution system by adding or upgrading poles, transformers, substations and related equipment. Jackson EMC returns any revenue beyond this to members as margin refunds.
Will I get a margin refund?
Since 1938, Jackson EMC has returned $189 million in margin refunds to members.
Based on our financial condition, the board of directors decides each year how much of the excess revenue is returned to members. This excess is refunded from a combination of years so that longtime and newer members benefit from Jackson EMC membership.
The sum of your margin refund check is based on the amount you paid for electric service during these years. For example, in December 2022, current and former Jackson EMC members who received electric service during 1994, 1995, 1996 and/or 2021 received their share of $15 million in margin refunds.
How do margin refunds work?
- Jackson EMC tracks how much electricity you use and pay for each year.
- At the end of the year, Jackson EMC looks at the cost to maintain and deliver reliable electricity to determine if there are excess revenues.
- The cooperative allocates left over revenues as margin refunds to members, based on how much electricity they’ve used.
- If financial conditions allow, the board of directors returns to members margin refunds for specific years.
- Jackson EMC mails them in December.