Molly Ayala
Electric cooperatives are private, not-for-profit utilities owned by their customers and operated as a business. They are typically established in rural areas where commercial power companies do not see the financial returns needed to build the infrastructure. Electric cooperatives are owned by their consumer members, who elect board members to hire a general manager and staff to manage the business activities. They are not driven by investors and prioritize community economic growth over profit. Electric cooperatives support over 40 million people and serve more than 90% of counties classified as persistently impoverished.
| Characteristics | Values |
|---|---|
| Definition | A type of cooperative that is tasked with the delivery of a public utility such as electricity, water, or telecommunications to its members. |
| Ownership | Owned by their customers and operated as a business. Each cooperative member owns an equal share in the business. |
| Type | There are two types of electric cooperatives: distribution cooperatives and generation and transmission (G&T) cooperatives. |
| Governance | Governed by an elected board of directors. |
| Members | 42 million people are served by electric cooperatives. |
| Businesses Powered | Over 20 million businesses, homes, and schools are powered by electric cooperatives. |
| Profit | Not-for-profit organizations that return more than $1 billion to their consumer members annually. |
| Fuel Mix | Anchored by always-available energy (85%) from coal, natural gas, nuclear, and hydroelectric power, supplemented by non-hydro renewables (14%), primarily intermittent wind and solar. |
| Community | 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. |
| Decision-Making | Co-ops make decisions on how best to meet demand based on the needs of their local communities. |
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What You'll Learn
- Electric cooperatives are private, not-for-profit utilities owned by customers
- Co-ops are run democratically, with members electing a board
- They serve 42 million people in the US, including 92% of persistent poverty counties
- Co-ops are committed to community economic growth over profit
- Electric cooperatives are an alternative to commercial utility companies
Electric cooperatives are private, not-for-profit utilities owned by customers
Electric cooperatives are private, not-for-profit utilities owned by their customers. They are formed when communities come together to pool resources, raise capital, and engage in the engineering and training required to establish electricity generation and distribution services. Electric cooperatives are built by and belong to the communities they serve. They are led by members of the community and are designed to meet local needs.
Electric cooperatives are an alternative to commercial utility companies. They are governed by an elected board of directors and function as nonprofits, running on a cost-of-service basis. Any leftover profits are invested in infrastructure or paid out as dividends to members. Members of electric cooperatives are not just customers but owners, with equal status and influence. They participate in policymaking and work together to improve sustainability and the good of their community.
The electric cooperative model is rooted in the Seven Cooperative Principles, reflecting the values of equality, democracy, self-help, and solidarity. Electric cooperatives are not driven by investors but prioritize community economic growth over profit. They are focused on the community's well-being and can foster autonomy, independence, self-reliance, and democracy in the areas they serve.
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, serving 42 million people in rural farming communities, suburbs, and small cities. Electric cooperatives power over 20 million businesses, homes, and schools, keeping the lights on and transforming communities.
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Co-ops are run democratically, with members electing a board
Electric cooperatives are private, not-for-profit utilities owned and operated by their customers. Each cooperative member owns an equal share in the business, regardless of their connection type or electricity consumption. Electric cooperatives are built by and belong to the communities they serve, and they are led by members of these communities.
The democratic nature of electric cooperatives empowers members to have a direct say in operational matters such as rate increases, infrastructure investment decisions, and budget surplus allocation. This democratic structure fosters a sense of responsibility among members, resulting in higher standards for operations and customer satisfaction.
Electric cooperatives are rooted in the Seven Cooperative Principles, reflecting the values of equality, democracy, self-help, and solidarity. These principles guide the decision-making process and ensure that the cooperative's actions align with the community's well-being.
By involving members in the decision-making process, electric cooperatives can better understand the unique needs of their local communities and tailor their services accordingly. This democratic approach to governance sets electric cooperatives apart from traditional utility companies and contributes to their success in delivering reliable electricity to millions of people across America.
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They serve 42 million people in the US, including 92% of persistent poverty counties
Electric cooperatives are private, not-for-profit utilities that are owned and operated by their customers. Each cooperative member owns an equal share in the business, regardless of their connection type or electricity consumption. They are built by and belong to the communities they serve, and they are led by members of these communities. This means they are uniquely suited to meet local needs.
Electric cooperatives serve 42 million people in the United States, covering 56% of the nation's landmass. They are present in 48 states and power over 22 million businesses, homes, schools, and farms. They also serve 92% of persistent poverty counties in the country.
Co-ops are engines of economic development, supporting approximately 623,000 jobs and contributing $111 billion to the US GDP annually from 2018 through 2022. They invest $15 billion annually in their communities, and they return more than $1 billion to their consumer-members every year.
Co-ops are focused on the long-term success of the communities they serve. They are dedicated to providing electricity to rural areas, and they are committed to keeping rates affordable for low-income consumers.
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Co-ops are committed to community economic growth over profit
Electric cooperatives are private, not-for-profit utilities owned by their customers and operated as a business. Each cooperative member owns an equal share in the business regardless of their connection type or how much electricity they purchase. Electric cooperatives are built by and belong to the communities they serve. They are led by members from the communities and are uniquely suited to meet local needs.
Electric cooperatives are rooted in the Seven Cooperative Principles, which reflect the values of equality, democracy, self-help and solidarity. They are owned by their consumer-members, who elect board members to hire a general manager and staff to manage the business activities. While electric cooperatives are businesses that must recover their costs, they are not driven by investors and prioritize community economic growth over profit.
Co-op members often have a say in operational matters like rate increases, infrastructure investment or how to spend a budget surplus. A cooperative might opt to distribute a surplus as credits spread across all members. All financial returns on investments remain in the communities they serve, cultivating a sense of responsibility among community members and ensuring higher standards for operations and customer satisfaction.
Electric cooperatives play a crucial role in the electrical sector, powering 56% of the nation's landmass. They currently provide electricity to one in eight Americans living in rural farming communities, as well as in suburbs and small cities. Electric cooperatives power over 20 million businesses, homes and schools, serving 42 million people daily.
Co-ops make decisions on how best to meet demand based on the needs of their local communities. For example, some cooperatives are investing in new natural gas projects to meet growing demand, while others are developing geothermal energy storage or recommissioning nuclear power plants.
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Electric cooperatives are an alternative to commercial utility companies
Electric cooperatives are rooted in the Seven Cooperative Principles, which reflect the values of equality, democracy, self-help, and solidarity. They are built by and belong to the communities they serve, and they are led by members from these communities. This means they are uniquely suited to meet local needs. For example, cooperatives make decisions on how best to meet demand based on the needs of their local communities.
There are two types of electric cooperatives: distribution cooperatives and generation and transmission (G&T) cooperatives. Distribution cooperatives deliver electricity and other services to their members, while G&T cooperatives sell wholesale power to distribution cooperatives and are owned by their member cooperatives. Electric cooperatives power over 20 million businesses, homes, and schools, serving reliable electricity to 42 million people daily.
Cooperative members have a say in operational matters such as rate increases, infrastructure investment, and budget surplus spending. Surpluses are often distributed as credits across all members. Electric cooperatives are not driven by investors and prioritize community economic growth over profit. They are governed by an elected board of directors, with members voting in annual cooperative board elections.
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Frequently asked questions
An electric cooperative is a private, not-for-profit utility that is owned by its customers and operated as a business. 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 play a crucial role in the electrical sector. They are America's electrical engine, powering 56% of the nation's landmass. Electric cooperatives 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, serving 42 million people.
Electric cooperatives are owned by their consumer-members, who elect board members to hire a general manager and staff to manage the business. Co-op members have a say in operational matters like rate increases, infrastructure investment and how to spend a budget surplus. They are governed by an elected board of directors and are driven by the values of equality, democracy, self-help and solidarity.
