Cobb EMC Explains the Patronage Capital Allocation Notifications

A small white fold-out card is generating much confusion at Cobb EMC. In fact, Option Number 7 is a dedicated phone option for this card, which is called the Patronage Capital Allocation Notification for 2010.

I called in to Cobb EMC and spoke to a manager on duty. Here is the simple explanation: Whenever you pay a power bill at an Electric Membership Corporation (or EMC), you are contributing to the money pot. What ever is left when all expenses have been paid is then called Patronage Capital, or Allocated Capital Credits. If you need the money, don't hold your breath. Due to the economic situation, I seriously doubt that Cobb EMC's governing Board will ever release these funds, but it does sometimes happen.

The Patronage Capital Allocation is distributed in two ways: by disbursement and by transfer into a holding account just in case expenses are bigger than expected. Each year, the managing Board in charge has the option to disburse, or pay, the funds out to you. This is a capital asset that you hold in the financial books of the EMC. It is not a stock. It is not a bond. Generally, the funds stay on the books as a sort of liability that the EMC can pay back to you at any time. Sometimes an EMC retains funds for longer than a decade.

Some of the assets are still held from as far back as the 1930s and, when released, the company will use your last known address on file. Here is where some of the Lost Money you see ads for comes from. Other types of Lost Money are lawsuit judgements, debt pay-offs, inheritances, found property or money turned over to the state, and more.

It's can be important to keep former utilities up to date on your contact information in case a disbursement does get approved and distributed. Cobb EMC members can call in and receive the amounts for previous years of account credits. When the funds eventually get disbursed, they are often released with very little or no advance notice to company staff, customers, and former customers.

Source for this article is Cobb EMC staff and management.