Otis Singleton
Electric cooperatives are private, non-profit companies that are owned and operated by their members or customers. They are dedicated to providing electricity to rural areas and empowering communities. Electric co-ops serve 42 million people, including 92% of persistent poverty counties, and power over 20 million businesses, homes, and schools. They are built by and belong to the communities they serve, and they are led by members from these communities. As such, they are uniquely suited to meet local needs and work towards the betterment of their communities.
| Characteristics | Values |
|---|---|
| Number of people served | 42 million |
| Percentage of poverty counties served | 92% |
| Number of businesses, homes, schools and farms powered | Over 20 million |
| Annual amount returned to consumer-members | $1 billion |
| Number of distribution cooperatives | 832 |
| Number of generation and transmission cooperatives | 64 |
| Renewable capacity in 2023 | 15.8 gigawatts |
| Additional renewable capacity in 2023 | 1.3 gigawatts |
| Number of homes powered by wind farms and solar arrays | 3.5 million |
| Number of cooperatives receiving federal funding | Over 60 |
| Amount of federal funding | Over $1 billion |
| Number of people served in North Carolina | 2.5 million |
| Number of cooperatives in North Carolina | 26 |
| Amount granted for economic development projects in North Carolina over five years | $57 million |
| Number of jobs created in North Carolina | 5,000 |
| Amount of new capital investment in North Carolina | $1 billion |
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What You'll Learn
- Electric co-ops reinvest revenue into their communities
- They are democratically controlled and work in the best interest of their members
- Co-ops are service-focused and provide electricity to rural areas
- They are committed to improving sustainability and the wellbeing of their communities
- Electric co-ops support economic development and create jobs
Electric co-ops reinvest revenue into their communities
Electric cooperatives are private, non-profit organisations owned and operated by their members or customers. They are dedicated to providing electricity to their members and improving the sustainability and well-being of their communities.
As non-profit organisations, electric cooperatives reinvest revenue into their communities in two main ways. Firstly, they invest in infrastructure and stable rates to improve services. This includes adopting new technologies and strategies to improve reliability, such as microgrids that integrate solar power, battery storage, and smart thermostats. Electric cooperatives are also committed to providing electricity to rural areas, empowering over 42 million people with reliable electricity daily.
Secondly, electric cooperatives return revenue to their members in the form of capital credits or patronage capital. This ensures that the cooperative operates in the best interest of its members and communities. The amount and timing of these payouts vary depending on the individual cooperative's governing documents and financial health.
In addition to providing electricity, electric cooperatives engage in a variety of activities that benefit their communities. For example, North Carolina's electric cooperatives have supported over 100 economic development projects with $57 million in grants and loans in the last five years, creating 5,000+ jobs and over $1 billion in new capital investment in rural areas. Electric cooperatives also offer programs to help members manage their energy use, such as energy alerts and special rates for electric vehicle drivers, further reinvesting in their communities.
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They are democratically controlled and work in the best interest of their members
Electric cooperatives are democratically controlled, with members voting in board elections and participating in policy-making. This democratic control ensures that co-ops operate in the best interest of their members and the communities they serve. Co-ops are not-for-profit organisations, and their main purpose is to provide safe, reliable, and affordable electricity to their members.
Revenue received above operating costs is reinvested in the cooperative to improve services and is allocated back to the members in the form of capital credits. This ensures that the co-op is working for the benefit of its members and the community. Electric cooperatives are built by and belong to the communities they serve. They are led by members from the community and are focused on meeting local needs.
Co-ops are committed to providing electricity to rural areas, empowering communities, and driving economic development. They serve millions of people and businesses, playing a vital role in transforming communities and keeping the lights on. Co-ops are also committed to improving sustainability and the well-being of their communities. They invest in clean energy technologies, such as solar, hydroelectric, and battery storage, and support community initiatives.
The member-driven governance model ensures that decisions are made locally and focus on the needs and interests of the community. Members vote for their district's board of directors, who represent the community and approve bylaws and amendments. This structure helps the co-op respond quickly to changing circumstances and make well-informed decisions. It also ensures that the co-op is accountable to its members and focused on their long-term financial stability.
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Co-ops are service-focused and provide electricity to rural areas
Electric cooperatives are service-focused and dedicated to providing electricity to rural areas. They are built by and belong to the communities they serve, and are led by members of those communities. This means they are uniquely placed to meet local needs. Electric cooperatives are also not-for-profit organisations, so their primary purpose is to provide safe, reliable, and affordable electricity to their members, rather than to make a profit.
In the 1930s and 1940s, electric cooperatives began to take root in sparsely populated areas across the United States. At that time, nine out of ten rural homes had no electricity, and it was not commercially viable for investor-owned utilities to expand beyond densely populated areas. The Rural Electrification Act of 1936 provided loans to electric cooperatives to support the expansion of electric service to small communities. As a result, the number of rural homes with electricity more than tripled in five years.
Today, electric cooperatives continue to provide electricity to millions across rural America. They serve 42 million people, including 92% of persistent poverty counties, and power over 22 million businesses, homes, schools, and farms in 48 states. Electric cooperatives are also committed to improving the sustainability of their local communities. They have almost doubled their renewable capacity since 2016 and have added over 1.3 gigawatts of new renewable capacity in 2023. Co-op wind farms and solar arrays generate enough electricity to power over 3.5 million homes.
Electric cooperatives are democratically controlled, with members able to vote in board elections, participate in policymaking, and share their ideas and concerns. This democratic control ensures that cooperatives operate in the best interest of their members and communities.
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They are committed to improving sustainability and the wellbeing of their communities
Electric cooperatives are committed to improving sustainability and the well-being of their communities. They are democratically controlled, with members voting in board elections and participating in policy-making, ensuring that the co-op operates in the best interest of its members and the community. This democratic structure also allows members to voice their thoughts and ideas, fostering a sense of community ownership and involvement.
Co-ops are dedicated to providing electricity to rural areas, empowering communities that might otherwise be neglected by commercial utility companies due to their focus on profit. By delivering reliable and affordable electricity, co-ops play a vital role in transforming communities and driving economic development. They serve a significant number of people, with over 20 million businesses, homes, and schools powered by electric cooperatives.
In addition to their core function of providing electricity, electric cooperatives go beyond by reinvesting revenue into their communities. They support local economic development projects, create jobs, and attract capital investment. For example, North Carolina's electric cooperatives have supported over 100 economic development projects with $57 million in grants and loans in the last five years, resulting in the creation of 5,000+ jobs and over $1 billion in new capital investment in rural areas.
Electric cooperatives are also leaders in adopting clean energy technologies and improving sustainability. They have significantly increased their renewable capacity, with co-op wind farms and solar arrays generating enough electricity to power millions of homes. Co-ops are targeting substantial reductions in carbon emissions and are integrating innovative solutions, such as microgrids, solar power, battery storage, and electric vehicles, to maximize efficiency and value for their members while also reducing their environmental impact.
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Electric co-ops support economic development and create jobs
Electric cooperatives are not-for-profit, democratic organisations that are built by and belong to the communities they serve. They are led by members from the community and are focused on the long-term success and well-being of their local communities.
Co-ops are important drivers of their local economies and have a significant impact nationwide. They support economic development by providing safe, reliable, and affordable electricity to members, which is a key ingredient for a successful economy. They also reinvest revenue into their communities through infrastructure development and stable rates.
A report by NRECA and CFC found that electric co-ops supported nearly 623,000 jobs with $51 billion in pay and benefits each year, contributing $554 billion to the US gross domestic product between 2018 and 2022. This included $135 billion in federal, state, and local tax revenue.
Co-ops also have a wide range of other activities that benefit their communities, such as creating business incubators, building broadband networks, and attracting new employers. They are also committed to reducing emissions and incorporating renewable energy sources.
Electric co-ops are powerful engines of economic development, creating jobs and supporting local businesses and communities across the nation.
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Frequently asked questions
Electric co-ops are not-for-profit, member-owned organisations that are democratically governed and community-focused. They reinvest revenue into their communities through stable rates and infrastructure or return it to members through patronage capital. They are committed to improving sustainability and the well-being of their local and surrounding communities.
Electric co-ops are leaders in deploying microgrid technology, which brings local energy resources to a community and creates a number of benefits for residents. They also offer members renewable energy options and invest in conservation, research, and technology development in solar, wind, and bio-waste fuels.
Electric co-ops provide reliable electricity at cost-of-service prices, which is especially beneficial for members in rural communities who may have been ignored by commercial utility companies due to a lack of profitability. They also offer members new services and technologies that can help them manage their energy use and save money, such as energy use alerts and smart thermostat programs.
Electric co-ops have supported economic development projects with grants and loans, spurring the creation of thousands of jobs and billions in new capital investment in rural communities.
