Jackson Electric Membership Corporation (Jackson EMC) announced that it would distribute $15 million in margin refund checks to roughly 235,000 current and former members in December. This distribution raises the total refunds to a staggering $204 million since its inception in 1938.
According to a statement by Rodney Chandler, chairman of the Jackson EMC Board of Directors, “Jackson EMC operates at cost, which means our primary focus is member service, not profits. Crossing the $200 million mark in returned margin refunds this year shows Jackson EMC’s long history of keeping the cooperative financially strong to deliver safe, reliable and affordable electricity for its members.”
Jackson EMC explains that margin refunds span several years and benefit both former and current members of electric cooperatives like themselves. They are based on the electric service usage in specific years including 1996, 1997, 1998, and/or 2022.
A margin refund is defined by Jackson EMC as excess revenue left over after all expenses are covered. Not-for-profit cooperatives such as Jackson EMC distribute this excess revenue back to their members. The surplus revenues are used first for covering electricity provision costs and enhancing distribution infrastructure. Any remaining revenue is then redistributed back to members as margin refunds.
In addition to distributing these refunds, Jackson EMC also monitors its members’ annual electricity usage and expenses. Any surplus revenues calculated based on the cost of maintaining reliable electricity delivery are allocated as margin refunds. These refunds are distributed proportionately based on individual electricity consumption for specific years when feasible. The board of directors oversees this process with distributions typically mailed out in December.
Channel 2 Action News has advised customers seeking further information about these refunds to contact Jackson EMC directly at 1-888-228-9166.
