Molly Ayala
Electric cooperatives are private, not-for-profit utilities owned and operated by their customers. They are dedicated to providing electricity to rural areas, powering over 20 million businesses, homes, and schools, and serving 42 million people. Electric cooperatives are always looking for qualified job candidates and pay competitive salaries. They are also looking to leverage new infrastructure funds to support their communities through programs included in the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
| Characteristics | Values |
|---|---|
| Owned by customers | Each customer is a member and owner of the business |
| Not-for-profit | $45 billion in annual revenue |
| Operated as a business | $30 billion in member equity |
| Private | 42 million people served |
| Provide electricity to rural areas | 20 million businesses, homes and schools powered |
| Provide renewable energy | 4.8% more electricity delivered in 2022 than in 2021 |
| Reduce emissions | 83% reduction in sulphur dioxide emissions from 2005 to 2022 |
| 68% reduction in nitrogen oxide emissions from 2005 to 2022 | |
| 14% reduction in carbon dioxide emissions from 2005 to 2022 | |
| Nearly doubled their renewable capacity since 2016 | |
| 93% of cooperatives serve persistent poverty counties | |
| $1 billion returned to consumer-members annually | |
| Governed by an elected board of directors | 832 distribution cooperatives |
| 64 generation and transmission cooperatives | |
| 60 cooperatives in 30 states negotiating federal funding | |
| Over $1 billion in federal funding | |
| 611,600 jobs supported |
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What You'll Learn
- Electric cooperatives are member-owned and operated
- They are dedicated to providing electricity to rural areas
- Co-ops are an alternative to commercial utility companies
- They are focused on reducing emissions and switching to natural gas and renewables
- Electric cooperatives are engines of economic development
Electric cooperatives are member-owned and operated
Electric cooperatives are private, not-for-profit organizations, and any financial returns on investments remain in the communities they serve. They are rooted in the Seven Cooperative Principles, reflecting the values of equality, democracy, self-help, and solidarity. Cooperatives are governed by an elected board of directors, and they prioritize community economic growth over profit.
The principal purpose of electric cooperatives is to deliver electricity to members in their service area, and they currently provide electricity to 42 million people in the United States, powering over 20 million businesses, homes, and schools. They are especially important in rural communities, where they provide reliable electricity to one in eight Americans in farming communities, suburbs, and small cities.
Electric cooperatives are built by and belong to the communities they serve, and they are well-suited to meet local needs. They are often established when communities organize themselves to pool resources, raise capital, and engage in engineering and training to establish electricity generation and distribution services. Electric cooperatives can be the building blocks for autonomy, independence, and democracy in the communities they operate, and they foster a sense of responsibility among members.
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They are dedicated to providing electricity to rural areas
Electric cooperatives are dedicated to providing electricity to rural areas. They are member-owned and operated, with each member owning an equal share of the cooperative. This means that cooperatives are democratically run, with members voting in annual board elections.
Co-ops were created to bring electricity to rural areas that were not served by investor-owned utilities, as these companies believed there would be insufficient revenue to justify the capital expenditure. Electric cooperatives are therefore crucial in the electrical sector, powering 56% of the nation's landmass and serving 42 million people in the United States.
Co-ops provide electricity to one in eight Americans living in rural farming communities, as well as in suburbs and small cities. They power over 20 million businesses, homes, and schools, and are an alternative to commercial utility companies. Electric cooperatives are built by and belong to the communities they serve, and they are uniquely suited to meet local needs.
Co-ops are not driven by investors and prioritise community economic growth over profit. They are also committed to reducing emissions and incorporating renewable energy technologies, such as solar, hydroelectric, and battery storage.
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Co-ops are an alternative to commercial utility companies
Electric cooperatives are an alternative to commercial utility companies. They are a type of private, nonprofit organization owned and operated by their members or customers. The principal purpose of electric cooperatives is to deliver electricity to their members living in their service area. Electric cooperatives are member-owned and operated, and democratic processes allow members to vote in annual cooperative board elections. Members of electric cooperatives are considered owners rather than customers, and cooperatives are dedicated to providing electricity to rural areas.
Electric cooperatives play a crucial role in the electrical sector, powering 56% of the nation's landmass in the United States. They provide electricity to one in eight Americans, or about 42 million people, in rural farming communities, suburbs, and small cities. Electric cooperatives power over 20 million businesses, homes, and schools and 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.
Utility cooperatives are owned and governed by the customers they serve, particularly in rural communities that investor-owned utility companies have neglected. In a utility cooperative, the community's power is in the hands of its residents, and each member has a voice in the governance of the cooperative and the delivery of its services. Utility cooperatives manage public services such as electricity, water, and telecommunications.
Electric cooperatives are tax-exempt nonprofit businesses, and they focus on providing the best service at the lowest possible cost. Unlike commercial utilities, cooperatives are not-for-profit enterprises that run on a cost-of-service basis. Leftover profits in a cooperative are invested in infrastructure or paid out as dividends to members. Members of cooperatives have equal status and influence, participate in policymaking, and work together to improve sustainability and the good of their community.
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They are focused on reducing emissions and switching to natural gas and renewables
Electric cooperatives are member-owned and operated, democratic organizations that provide electricity to their members. They serve around 42 million people, including 92% of persistent poverty counties, powering over 20 million businesses, homes, and schools.
Smaller electric cooperatives are focused on reducing emissions and switching to natural gas and renewables. They have made significant strides in reducing emissions, with a 83% reduction in sulphur dioxide emissions, a 68% reduction in nitrogen oxide emissions, and a 14% reduction in carbon dioxide emissions from 2005 to 2022. Since 2016, cooperatives have almost doubled their renewable capacity, with wind farms and solar arrays now generating enough electricity to power more than 3.5 million homes.
Co-ops are incorporating renewables to complement their always-available generation. They are investing in clean energy technologies, including solar, hydroelectric, and battery storage. These investments are supported by federal incentives, such as the Inflation Reduction Act (IRA), which provides $9.7 billion in grants and loans for rural electric cooperatives to purchase renewable energy systems and zero-emission technologies.
By transitioning to clean energy, cooperatives can reduce their CO2 emissions by 80-90% relative to 2021 levels, while also meeting load requirements and ensuring power supply reliability. This transition requires significant financing, but federal tax credits can offset almost half of the investments. With these incentives, cooperatives can provide affordable, reliable, and clean electricity to their members, benefiting rural communities and reducing their environmental impact.
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Electric cooperatives are engines of economic development
Electric cooperatives are dedicated to providing electricity to rural areas, empowering communities, and improving the quality of life for their members. They are an alternative to commercial utility companies, delivering electricity to areas that may otherwise be underserved or neglected by traditional utility providers. Electric cooperatives are also committed to reducing emissions and incorporating renewable energy sources, such as solar, hydroelectric, and wind energy.
The democratic nature of electric cooperatives is a key aspect of their operation. Members have an equal stake in the business and a voice in its decision-making processes, including the election of board members. This structure fosters a sense of community and solidarity, with cooperatives prioritizing economic growth and alignment with the community's well-being over profit.
Electric cooperatives also contribute to job creation, supporting more than 611,000 jobs in various roles, from field services to engineering. They provide competitive salaries and offer financial returns to their members, further contributing to local economic development.
Overall, electric cooperatives play a vital role in transforming communities by providing reliable access to electricity, promoting democratic values, and driving economic growth and development. Their focus on serving their members and communities makes them powerful engines of progress and empowerment.
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Frequently asked questions
Electric cooperatives are private, not-for-profit utilities owned by their customers and operated as a business. They are dedicated to providing electricity to rural areas, powering over 20 million businesses, homes and schools.
Members of electric cooperatives are considered owners and have an equal share in the business. Electric cooperatives are service-focused and strive to bring the best service at the lowest possible cost. They also provide renewable energy projects to rural communities, creating new jobs and supporting local economic growth.
Electric cooperatives are always looking for qualified job candidates and pay competitive salaries. You can search for job openings at electric cooperatives by searching "rural electric cooperative jobs" on job search engines like Indeed, or by visiting the NRECA Cooperative Career Center.
