CGEMC FAQs
FREQUENTLY ASKED QUESTIONS
What Is a Cooperative?
- A Cooperative is a voluntary contractual organization of persons having a mutual ownership interest in providing themselves a needed service on a non-profit basis.
- A Cooperative is democratic member control which implies the principle of an open voluntary membership with control exercised on the basis of one vote per member rather than multiple votes according to capital investment in the organization.
- A Cooperative operates on a cost of doing business basis. This is the basic reason for co-op existence, which is to meet the needs of the people at the lowest fair and practical net cost.
As the explanation of a Cooperative implies, Central Georgia Electric Membership Corporation receives its purpose and legitimacy from two different directions. First, the State of Georgia passed laws which allow Central Georgia EMC to incorporate as a Cooperative. This state activity provided the charter which enabled the members to form Central Georgia Electric Membership Corporation. Second, the Board of Directors exercise democratic control, as authorized by the membership.
What are Capital Credits?
Capital credits are an annual allocation of funds representing your share of ownership in the Cooperative. They are the margins, or the money left after expenses, shared by the members. Capital credits are based on each member's annual energy usage and their contribution to margin.
Capital credits are used by CGEMC for operating capital, necessary reserves, storm damage, rebuilding or upgrading aging electric lines, replacing equipment, and other contingencies. This allows the Co-op to better serve your needs for reliable power.
The Cooperative's Board of Directors determines when capital credits can be paid to members based on maintaining a sound financial condition and in accordance with the Code of Regulations and board policy. Distribution of capital credits, as approved by the Board, are normally mailed to the members in December.
The co-op difference is, YOU, the member.
You are CGEMC's source of power and direction. You elect a board of directors and through the Board you participate in major decisions and run the cooperative.
The Cooperative Principles explain the unique aspects of doing business on a cooperative basis.
1st Principle:
Voluntary Any Open Membership
Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
2nd Principle:
Democratic Member Control
Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights - one member, one vote - and cooperatives at other levels are organized in a democratic manner.
3rd Principle:
Member Economic Participation
Members contribute equally to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. They usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
4th Principle:
Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
5th Principle:
Education, Training and Information
Cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of cooperation.
6th Principle:
Cooperation Among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
7th Principle:
Concern For Community
While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.
CGEMC Members Earn Capital Credits
A cooperative is a nonprofit organization; rates are based on the cost of doing business. Any funds collected above the cost of operation (capital credits) are assigned to members' capital accounts. Capital credits are refunded when the financial condition of the co-op permits. CGEMC is presently on a 20 year rotation in retiring capital credits. (Be sure to keep us informed of future address changes so that we can ensure you receive your capital credits). Each year our newsletter, News & Views, reports to you the annual percentage of capital credits.
