Trystan Casey
Electric cooperatives are not-for-profit, democratic organizations that are owned and controlled by their members. They are established to provide electricity to their member-owners, with any excess margins returned to the consumer. Electric cooperatives are the foundation of the electric cooperative network, delivering electricity and other services to their members. They are built by and belong to the communities they serve and are thus able to meet local needs. Electric cooperatives have proven to be financially stable, with a primary focus on the financial health of the organization. They are committed to their members and work to ensure excellent customer service.
| Characteristics | Values |
|---|---|
| Owned by the community | 42 million Americans |
| Not-for-profit | 42 million people served, including 92% of persistent poverty counties |
| Governed by a board of directors elected from the membership | Over $1 billion returned to members annually |
| Members have democratic control | 22 million businesses, homes, schools and farms powered |
| Members have access to experts for energy advice | 832 distribution cooperatives |
| Members have access to education and training | 64 generation and transmission cooperatives |
| No discrimination based on gender, social, racial, political or religious grounds | 10 gigawatts of power purchased from federal hydropower facilities |
| Focus on reliability and customer service | Over $1 billion in federal funding for clean energy technologies |
| Financial stability |
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What You'll Learn
- Electric cooperatives are democratically controlled, not-for-profit organisations
- They are owned by their customers and run by elected board members
- They provide electricity to millions of people across rural America
- They are committed to serving their members and strengthening the cooperative movement
- They invest in improving their systems and technology to ensure reliable power
Electric cooperatives are democratically controlled, not-for-profit organisations
Electric cooperatives are built by and belong to the communities they serve. They are established when communities come together to pool resources, raise capital, and engage engineering and training expertise to establish electricity generation and distribution services. This means that they are uniquely suited to meet local needs. Electric cooperatives are governed by a board of directors that is elected by the members. Each cooperative member owns an equal share in the business, regardless of their connection type or how much electricity they purchase.
The board of directors is responsible for running the cooperative in the members' best interests. They hire and authorise a CEO to manage the cooperative's operations and ensure that the cooperative's needs are met. Members can also have direct input through member advisory committees or by offering suggestions to the board, CEO, and staff.
Electric cooperatives are committed to providing service over profits. They prioritise community economic growth over profit and any profits generated are returned to the members. Electric cooperatives are focused on the financial health of the organisation and aim to provide safe, reliable, and affordable electricity to their members. They also engage in activities that benefit their communities, such as donating to hospitals, fire stations, and ballparks.
Electric cooperatives are autonomous, self-help organisations that ensure democratic control by their members. They provide education and training for their members, representatives, managers, and employees to contribute effectively to the development of the cooperative. Cooperatives also work together through local, regional, national, and international structures to serve their members effectively and strengthen the cooperative movement.
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They are owned by their customers and run by elected board members
Electric cooperatives are owned by their customers, who are also members of the cooperative. Each cooperative member owns an equal share in the business, regardless of their connection type or how much electricity they purchase. This ownership structure ensures that cooperatives are driven by their members' needs and interests, rather than by profit.
Cooperatives are governed by a board of directors that is elected by the members. Any member can run for the board, and all members are encouraged to participate in the annual membership meeting, where board members are elected. The board is responsible for hiring a CEO or general manager to manage the cooperative's operations and for communicating with members to ensure their needs are met.
The democratic nature of cooperatives ensures that they operate in the best interest of the communities and members they serve. Members can also have direct input through advisory committees or by offering suggestions to the board, CEO, and staff. This member-driven governance model ensures that decisions are made locally and that the cooperative can respond quickly to changing circumstances.
Electric cooperatives are committed to their members and communities, providing reliable and affordable power while also contributing to community growth and development. They are concerned with the financial health of the organization and reinvest revenue back into the cooperative to improve services and benefit their members.
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They provide electricity to millions of people across rural America
Electric cooperatives provide electricity to millions of people across rural America. They are typically formed when communities come together to pool resources, raise capital, and engage engineering and training expertise to establish electricity generation and distribution services. This cooperative model is rooted in the Seven Cooperative Principles, reflecting values such as equality, democracy, self-help, and solidarity.
Co-ops are owned by their consumer-members, who are the people using the power the cooperative provides. Members have democratic control, actively participating in setting policies and making decisions. Each member owns an equal share in the business, regardless of their connection type or electricity consumption. The cooperatives are governed by a board of directors elected by the members, who hire a CEO and staff to manage operations.
Electric cooperatives supply electricity to over 42 million people in the United States, including 92% of persistent poverty counties. They power approximately 22 million businesses, homes, schools, and farms across 48 states. Co-ops are committed to serving their members and communities, providing safe, reliable, and affordable power. They have proven to be financially stable, with a focus on long-term financial strategies due to their member-ownership structure.
In addition to providing electricity, electric cooperatives contribute to their communities in various ways. They return more than $1 billion annually to their members, as they operate on a not-for-profit basis. This promotes community economic growth and development. Co-ops also invest in local projects, such as hospitals, fire stations, ballparks, and businesses, further enhancing the well-being of the communities they serve.
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They are committed to serving their members and strengthening the cooperative movement
Electric cooperatives are committed to serving their members and strengthening the cooperative movement. They are privately owned businesses that supply electricity to their member-owners, with each cooperative member owning an equal share. Electric cooperatives are not-for-profit organisations that prioritise community economic growth over profit. They are built by and belong to the communities they serve, and they are led by members of these communities. This means that they are uniquely suited to meet local needs.
Electric cooperatives are democratically controlled, with a board of directors elected from the membership. Any member can run for the board, and all members are encouraged to participate in the annual membership meeting where board members are elected. This democratic control ensures that the cooperative operates in the best interest of the communities and members it serves.
Cooperative members have direct input through advisory committees or by offering suggestions to the board, CEO and staff. Members are also kept informed through communication with the board, ensuring their needs are met. The cooperative model is rooted in the Seven Cooperative Principles, which reflect the values of equality, democracy, self-help and solidarity.
Electric cooperatives are committed to serving their members by providing safe, reliable and affordable electricity. They also engage in a variety of other activities that benefit their communities, such as giving to hospitals, fire stations and ballparks. Cooperatives are concerned for their communities and work to ensure excellent customer service, investing in improving their systems and technology. They are also committed to strengthening the cooperative movement by working together through local, regional, national and international structures.
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They invest in improving their systems and technology to ensure reliable power
Electric cooperatives are committed to enhancing the lives of their members and the communities they serve. They achieve this through various initiatives, one of the most significant being their dedication to improving their systems and technology to ensure reliable power for all.
Co-ops understand the importance of investing in their infrastructure and adopting new technologies to provide dependable electricity to their members. This involves regular upgrades to power lines, transformers, and substations, ensuring the system can meet the community's current and future energy demands. For example, many co-ops are now embracing digital technologies, such as smart meters and advanced grid management systems, to improve efficiency, reduce waste, and enhance power reliability.
The cooperatives' focus on system improvement and technological advancement is driven by their members' best interests. As
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Frequently asked questions
Electric cooperatives are typically formed when communities organize themselves to pool resources, raise capital, and engage engineering and training expertise needed to establish electricity generation and distribution service.
Electric cooperatives are built by and belong to the communities they serve. They are led by members from the community and are uniquely suited to meet local needs. Electric cooperatives are not-for-profit organizations and their main purpose is to provide safe, reliable, and affordable electricity to members. Revenue received above operating costs is reinvested in the cooperative to improve services and is allocated back to the membership.
Electric cooperatives are engines of economic development. They are owned by their consumer members and prioritize community economic growth over profit. Electric cooperatives return more than $1 billion to their consumer members annually.
