Hi John:
Your institution is not unlike many, who feel that points and grades should based on merit, performance and assessment of knowledge. I feel givin EC is okay if it's it's hust a small potion of their overall grade, and the EC does not substitute points for missed assignment points. I don't thinl it's fair for students to have the attitude, "I'll forego that assignment, and make up the points with some extra credit". So unless there a set policy (institutional or instructor), the "rules" have to be clearly stated to minimize misunderstandings.
Regards, Barry