Official Notice of Capital Credit Assignment for 2017
According to the Habersham EMC Bylaws, all cooperative revenue in excess of expenses each year (“margins”) is recorded in the cooperative’s member capital accounts as capital furnished by the members (“capital credits”).
The margins assigned for 2017 are as follows:
|HEMC Operating Margins||Power Suppliers||CFC||Others||Total|
The total margin percentage for 2017 is 3.61%
You are hereby notified that you have been assigned and credited on the cooperative’s member capital account with having furnished that additional amount of dollars, determined by multiplying your patronage for 2017 by the percentage listed above (3.61%).
Calculating Your Capital Credit Assignment for 2017
All cooperative revenue in excess of expenses each year (“margins”) is recorded in the cooperative’s member capital accounts as capital furnished by the members (“capital credits”). Capital credits are treated as capital contributed by the members. Member capital is utilized for a period of time to fund needs such as electric line construction, transformers, trucks, inventory and other operational needs, and to maintain the financial strength as required by HEMC’s lenders.
At a later date, when the financial condition of the cooperative permits, capital credits are returned to the members in proportion to their patronage in the form of a check. By allowing the cooperative to use the capital credits, HEMC borrows less money to operate and has less need to generate revenue through rate increases.
See the illustration below to calculate the amount of capital credit assignment for 2017.
2017 Capital Credit Assignment Illustration
|Total Amount – 2017 Power Bills*||Patronage Assigned %||Dollars Assigned to You|
*- Power bill = Total electric charges + outdoor lighting charges