Margin Refunds

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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?

  1. Jackson EMC tracks how much electricity you use and pay for each year.
  2. 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.
  3. The cooperative allocates left over revenues as margin refunds to members, based on how much electricity they’ve used.
  4. If financial conditions allow, the board of directors returns to members margin refunds for specific years.
  5. Jackson EMC mails them in December.

Calculating your capital credits for 2022

One of the benefits of being a member of a cooperative is receiving capital credits.

Jackson EMC is a not-for-profit electric cooperative owned by our members. Each year, amounts collected above the cost of providing electric service are credited to members’ capital accounts based on their patronage (total billing less sales tax).

Each year, capital credits – known as margin refunds by Jackson EMC – are returned to members under certain conditions. The board of directors determine which previous years of capital credits to return, while keeping the cooperative financially strong. More than one previous years’ of capital credits may be returned to members. Eligible current and former Jackson EMC members receive these funds as margin refund checks in December.

Please note that your margin refund check in December may vary from your calculated capital credit amount for a specific year. The board of directors determines when to retire capital credits.

Your 2022 capital was 7.399 percent of your total patronage. See the example to calculate your capital credit.

This notification is for all rates, except QF, LPS, LGS or MBS (you can find your rate designation printed on your monthly bill). Members with those rates have received a separate notification.

Example for Calculation of 2022 Capital Credits

Amount of bills for 2022 (excluding sales tax) x Allocation Patronage (7.399%) = Your Dollar Allocation

For example:

  • If your 2022 power bills totaled $500:
    • Amount of Bills for 2022 (excluding sales tax) x Allocation Patronage = Your Dollar Allocation
    • $500 x 7.399% = $37.00
  • If your 2022 power bills totaled $1,500:
    • Amount of Bills for 2022 (excluding sales tax) x Allocation Patronage = Your Dollar Allocation
    • $1,500 x 7.399% = $110.99