Sawnee to Issue Retirement Capital to Long Standing Customers

Sawnee Electric Membership Corporation, a member-owned, “not-for-profit” electric cooperative, announced Monday that it is preparing a refund through a special general retirement of patronage capital, to customers who were members in 1983 and/or 1984.

The Cooperative stated that approximately $1.36 million will be returned to eligible members; current members who received service during this period will receive a credit on their electric bill and former members who no longer receive service from Sawnee will receive a check in the mail.

“We are so glad to be able to make this special general retirement of patronage capital at this time” said Michael A. Goodroe, president and CEO of Sawnee EMC. “It is important for Sawnee EMC to demonstrate through this action that the cooperative business model works for our members and our organization. This decision was carefully considered by our [board of directors] and at this time, given the overall financial health of the organization, we are pleased to undertake this action”.

The refund represents the revenue in excess of operating costs and other funds received from associated organizations that were assigned to each member’s electric account for the year 1983 and a portion of the funds assigned for 1984. The refund will be issued in the form of a credit in the month of August for existing consumers who were members in 1983 and/or 1984. However, the former members who no longer have an active electric account with Sawnee EMC will be mailed a check to their last known address on or around Aug.15, 2008.

Blake House, Vice President of Marketing and Member Services, said the cooperative routinely evaluates patronage capital refunds; for 2008, the refund relates to 1983 and 1984, and the average refund for each residential account from those years is $51.00.

“This is a welcomed relief to our members during higher summer bills, stressful economic times and increasing pressure from natural gas and gasoline costs” said House. “There may come a time when we cannot make a general retirement of patronage capital, but for 2008, we are pleased to be able to do so”.

Patronage capital retirements are reviewed annually by Sawnee’s Board of Directors and based on the overall financial health of the organization, the bylaws of the corporation and other governing restrictions, a decision is rendered on whether a refund should be made or not.

It is also important to remember that Sawnee EMC refunds patronage capital upon demand to the estates of deceased members. Executors of an estate who have not previously requested a patronage capital refund, should contact the Sawnee Customer Service Center at 770-887-2363 to learn more about this program.

Former members of Sawnee EMC can also see if they are owed previous refunds by visiting the Sawnee Web site where we have published the names of individuals we were unable to contact concerning past patronage capital refunds.