Beatrice Lang
Electric cooperatives are energy providers that are built by and belong to the communities they serve. They are led by members from the community and are committed to their mission of improving the lives of the people they serve. Electric cooperatives are member-owned and operated, and members have a direct say in the cooperative's governance. They are service-focused and dedicated to providing electricity to rural areas, keeping rates affordable, and reducing emissions. Electric cooperatives also often pioneer new technologies that can improve operations and the lives of their members.
| Characteristics | Values |
|---|---|
| Owned and operated by members | Members are considered owners and are given voting rights |
| Not-for-profit | Revenue is returned to members in the form of capital credits |
| Community-focused | Electric cooperatives were formed to provide electricity to rural areas |
| Service-focused | Electric cooperatives provide electricity to over 22 million businesses, homes, schools and farms in 48 states |
| Committed to renewable energy | Electric cooperatives have drastically reduced emissions and are investing in solar, wind and bio-waste fuels |
| Engines of economic development | Electric cooperatives support nearly 623,000 jobs and contribute billions of dollars to the economy |
| Pioneer new technologies | Electric cooperatives adopt new technologies to improve operations and lower costs |
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What You'll Learn
You are a member and owner, not a customer
Electric cooperatives are member-owned and operated, which means that members are considered owners rather than customers. This ownership status brings with it a variety of benefits and rights. Members have a say in the governance of the cooperative through democratic processes, including the right to vote in annual board elections and participate in policy-making. They are encouraged to share their thoughts, ideas, and concerns, and their input is valued. This democratic structure ensures that members maintain equal status and work together for the good of the community.
As an owner, you have a direct influence on the decisions and direction of your electric cooperative. Your voice matters, and you can actively participate in shaping the cooperative's policies and strategies. This level of involvement and engagement sets electric cooperatives apart from traditional utility providers, where customers often have little to no say in how the company is run.
In addition to this, electric cooperatives are community-focused and are dedicated to improving the sustainability and well-being of the communities they serve. They are often formed to meet the needs of rural communities that may be overlooked by commercial utility companies. Electric cooperatives provide vital services, such as electricity and broadband internet access, to these underserved areas. They are committed to keeping rates affordable and reinvesting revenue into the community through infrastructure development and other necessary improvements.
Beyond providing essential services, electric cooperatives also contribute to the greater good by supporting community development and transformation. They are leading the transition to clean energy, reducing emissions, and promoting economic growth. For example, electric cooperatives are installing electric vehicle charging stations in sparsely populated areas, ensuring that their members have access to the latest advancements. This demonstrates their commitment to staying up-to-date and meeting the evolving needs of their members.
Being a member and owner of an electric cooperative means that you are part of a community-centric organization that prioritizes your needs and works towards the collective benefit. Your ownership status empowers you to have a say in the decision-making process and helps drive the cooperative's focus on reliability, affordability, and responsibility.
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Revenue is reinvested in the cooperative or returned to members
Electric cooperatives are member-owned and operated, which means that revenue is reinvested in the cooperative or returned to members. This is in contrast to traditional electric companies, which are investor-owned and driven by profit motives. Electric cooperatives, or co-ops, are committed to their communities and dedicated to providing electricity to rural areas, even when it may not be financially lucrative.
Revenue above operating costs is reinvested in the cooperative to improve services and is returned to members in the form of capital credits. This money can be used to invest in infrastructure, facilities, and other necessities for the cooperative. For example, Tri-State's members received $30 million in capital credits in a single year, and in the past five years, they have returned $130 million to their members.
Co-ops are also leading the way in the transition to clean energy, drastically reducing emissions and investing in renewable energy sources. This benefits the environment and brings cost savings and economic growth to co-op communities. Co-ops are committed to improving the lives of their members and the community by adopting new technologies and improving operations. They are also involved in a variety of community engagement activities and offer broadband services to their members.
The unique structure of electric cooperatives ensures that revenue is used for the benefit of members, not shareholders. This democratic control allows members to have a direct say in the governance of the cooperative and ensures that decisions are made with the needs and interests of the community in mind.
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Electric cooperatives are democratically controlled
Co-ops are owned by their members, who are also the electric consumers. This means that members have a direct say in the co-op's governance and that the co-op is independent and controlled by its members. The member-driven governance model ensures decisions are made locally and focus on the needs and interests of the community.
Co-ops are built by and serve the communities they belong to, and they are led by members from the community. This means they are well-suited to meet local needs. For example, electric cooperatives provide electricity to millions across rural America, where commercial utility companies are hesitant to operate due to lower profits.
Co-ops are also committed to supporting and improving the lives of their communities. For instance, more than 100 electric co-ops are providing broadband internet access to their members in rural areas, and they are installing electric vehicle charging stations in sparsely populated areas. Co-ops are also leading the way in the transition to clean energy, bringing cost savings and economic growth to co-op communities.
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They provide electricity to rural areas
Electric cooperatives (co-ops) are dedicated to providing electricity to rural areas. They were established in the 1930s and 1940s when residents of these areas struggled to access electric power. Investor-owned utilities often denied service to these regions, citing high development costs and low profit margins.
Rural consumers who could access electricity paid far higher prices than urban consumers. In response, rural residents joined together to form their own electric providers – cooperatives – to generate, transmit, and deliver electricity to their homes, schools, farms, and other businesses.
Today, electric co-ops continue to provide electricity to rural areas, powering over 22 million businesses, homes, schools, and farms in 48 states. They are consumer-owned utilities that purchase electric power at wholesale prices and deliver it directly to the consumer. Co-ops are well-suited to meet local needs as they are led by members from the community.
Co-ops have also expanded their offerings beyond electricity. For example, more than 100 electric co-ops are providing broadband internet access to their members in rural areas that may have been ignored by other service providers. Electric co-ops are also installing electric vehicle charging stations in their communities so that members in sparsely populated areas are not excluded from advancements in automotive technology.
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They are committed to supporting and improving lives in their communities
Electric cooperatives are committed to supporting and improving lives in their communities. They are democratically controlled, with a member-driven governance model that ensures decisions are made locally and focus on the needs and interests of the community. Members have a direct say in the cooperative's governance and can vote for their district's board of directors, who represent the district and approve bylaws and amendments. This structure helps the cooperative respond quickly to changing circumstances and make well-informed decisions.
Electric cooperatives are also dedicated to providing electricity to rural areas, which commercial utility companies may hesitate to do due to lower profits. They are engines of economic development, supporting nearly 623,000 jobs and contributing hundreds of billions of dollars to the economy over a five-year period. Co-ops return billions of dollars to their members annually and reinvest excess revenue into the cooperative for infrastructure, facilities, and other necessities.
In addition, electric cooperatives are leading the transition to clean energy, drastically reducing emissions and investing in conservation, research, and technology development in solar, wind, and bio-waste fuels. They also offer broadband internet access to members in rural areas, ensuring that families can work and attend school from home. During the recent pandemic, cooperatives stepped up by contributing to relief efforts, further demonstrating their commitment to their communities.
Electric cooperatives' unique structure and values benefit members, not shareholders. They are committed to improving the lives of the people and communities they serve, empowering people, and improving their quality of life. Their dedication to their communities and focus on the long-term success of these communities make electric cooperatives a powerful force for positive change.
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Frequently asked questions
Electric cooperatives are owned by their members, meaning the consumers are also the owners. Members have a direct say in the governance of the cooperative and vote for their district's board of directors. Electric cooperatives are democratically controlled and are dedicated to providing electricity to rural areas.
Electric cooperatives have a wide-ranging economic impact in the United States. They support local economies and foster economic growth by creating jobs, investing in their communities, and generating tax revenue. In the five years leading up to 2023, co-ops contributed $554 billion to the U.S. gross domestic product and generated $135 billion in federal, state, and local tax revenue.
Electric cooperatives are focused on the long-term success of their communities. They are committed to providing reliable and affordable electricity, as well as other services such as broadband internet access and electric vehicle charging stations. Electric cooperatives also contribute to relief efforts during times of crisis and are leading the way in the transition to clean energy.
