Every time you pay your utility bill to Edgecombe-Martin County EMC, you’re investing in your cooperative and contributing capital for essential system upgrades. As a not-for-profit organization, Edgecombe-Martin EMC returns margins, or capital credits, to its members—one of the many benefits of being a cooperative member-owner.
As a member, you are entitled to a share of the cooperative’s excess margins. “Capital Credits” refer to the allocation of each member’s share of these margins from the previous year—the difference between what members paid for electric service and the actual cost to provide it. These capital credits are retained by the cooperative as operating capital for several years, reducing the funds we need to borrow and keeping the cost of electric service affordable for members. Each year, Edgecombe-Martin County EMC returns or “retires” a portion of these capital credits, usually in March.
These equity contributions, known as patronage, help us maintain safe, reliable, and affordable electricity. Patronage represents each member’s share of the cooperative’s remaining funds after covering operational costs and setting aside reserves for general and emergency needs.
Like any business, we require capital to operate efficiently. Our primary source of capital is revenue from electricity sales to members. Unlike for-profit companies that pay dividends to shareholders, our cooperative allocates margins to members annually based on their energy usage. This ensures equitable distribution of capital credits while maintaining our not-for-profit status.
The capital collected is used for general operations, system improvements, and technology upgrades, which reduces the amount we borrow and keeps rates affordable. When financial conditions allow, the board of directors approves a general retirement of capital credits, distributing these funds back to members. This allows members to share in the cooperative’s success and receive a return on their investment.
We are pleased to announce that the board has authorized the retirement of over $1,000,000 in capital credits, clearing the remaining amounts from 2001, 2002, and half a percent of all allocations from 2003 through 2023. Starting the second week of March 2025, eligible members will receive checks for amounts over $25, while amounts under $25 will appear as bill credits.
To ensure you receive your capital credit retirement, please update your contact information. Many checks are returned due to outdated addresses, so notify us of any changes. For more details or to update your information, contact us at 252-823-2171. We also publish an annual report on our website listing unclaimed capital credit checks in March.
Cooperatively,
Melinda Nimmo