Wiktor Wise
In the United States, electric cooperatives are non-profit utilities owned by their members. They are governed by a board of directors elected from among their member-customers. For example, Indiana's Rural Electric Membership Cooperatives (REMCs) have withdrawn from Indiana Utility Regulatory Commission (IURC) jurisdiction, as allowed by state law. Electric cooperatives played a vital role in changing the way rural farmers operated and lived, with cooperatives like Sumner-Cowley Electric bringing electricity to rural areas. Today, cooperatives like Tri-County Electric and Cumberland Electric continue to provide electricity and other services to their members in Sumner County.
| Characteristics | Values |
|---|---|
| Type | Rural Electric Cooperative |
| Ownership | Member-owned |
| Governance | Governed by a board of directors elected by member-customers |
| Not-for-profit | Yes |
| Service Area | Cheatham, Montgomery, Robertson, Stewart, and Sumner counties in Tennessee |
| Wholesale Power Supplier | Tennessee Valley Authority (TVA) |
| History | Established in 1938 to bring electric services to rural areas; construction began in 1939 |
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What You'll Learn
- The Tennessee Valley Authority supplies wholesale power to Tri-County Electric
- Sumner-Cowley Electric Cooperative was established in 1938
- Rural Electric Membership Cooperatives are member-owned, non-profit utilities
- Electric cooperatives changed the way rural farmers operated
- Sumner-Cowley Electric Cooperative serves Cheatham, Montgomery, Robertson, Stewart and Sumner counties
The Tennessee Valley Authority supplies wholesale power to Tri-County Electric
Tri-County Electric Membership Corporation (TCEMC) is a member-owned cooperative that serves all or part of the following counties: Allen, Cumberland, Metcalfe, Monroe, Adair, Barren, Clinton, and Warren in Kentucky, as well as Macon, Clay, Trousdale, Sumner, Jackson, Overton, and Smith in Tennessee. With 19 substations and nearly 5,500 miles of distribution lines, TCEMC provides a wide range of services to its 53,000+ member-owners.
The Tennessee Valley Authority (TVA) supplies wholesale power to Tri-County Electric. TVA is the nation's largest public power provider, serving more than 10 million people across a seven-state region. They utilize multiple types of energy generation to provide affordable, reliable, and increasingly clean energy. This includes the third-largest nuclear fleet in the country, 29 power-generating dams, a pumped-storage site, solar energy, and coal and gas generation sites.
In addition to energy production, TVA also provides environmental stewardship. They manage 230,000 acres of public land and 40,000 miles of rivers, streams, and tributaries, helping to attract good jobs to communities across the region. TVA's economic development team works to bring new investments and jobs to the region. Their reliable, affordable, and resilient electricity has helped bring 100,000 new jobs to the region in the last five years.
TVA also manages the 652-mile Tennessee River to prevent flooding, generate power, protect water quality, and provide navigation support and recreation opportunities. TVA reservoirs and recreation generate nearly $12 billion in economic activity each year.
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Sumner-Cowley Electric Cooperative was established in 1938
In the mid-1930s, approximately 90% of rural American homes had no electricity. Private utility companies argued that it was too expensive to supply power to these isolated farmers. As a result, appliances such as washing machines and refrigerators were commonly found in cities but were absent from rural homes.
In 1935, President Roosevelt established the Rural Electrification Administration, and in 1936, Senator Norris worked with Congress to pass the Rural Electrification Act. The Act allowed the federal government to make low-cost loans to groups of farmers (cooperatives), making rural electricity a reality.
Soon after the passing of the Act, farmers from Sumner and Cowley counties came together to bring rural electric services to their area. On June 27, 1938, a charter was granted, and 22 farmers signed the articles of incorporation. The State Corporation Commission issued a certificate of convenience, giving the Sumner-Cowley Electric Cooperative the right to serve farmers in the area.
Sumner-Cowley Electric Cooperative is a member-owned, member-focused electric distribution cooperative. Headquartered in Wellington, Kansas, the cooperative has been providing electric services to rural areas of Sumner, Cowley, Harper, Kingman, and Sedgwick counties since 1938. Sumner-Cowley Electric's service area covers approximately 2,500 square miles, with approximately 4,300 meters and nearly 2,000 miles of line.
The cooperative is governed by a board of directors elected from among its member-customers.
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Rural Electric Membership Cooperatives are member-owned, non-profit utilities
Rural Electric Membership Cooperatives (REMCs) are unique in that they are member-owned, not-for-profit utilities. Each cooperative is governed by a board of directors, who are elected by the members. This is in contrast to most utilities in the U.S., which are investor-owned and operate with a profit motive.
Each member-owner of a Rural Electric Cooperative has one vote to elect the board, and the board is responsible for governing the cooperative, including establishing policies and procedures, and hiring executive staff. This democratic structure means that the power ultimately lies in the hands of the members, who can organise and get involved to influence the cooperative's energy policies. For example, members can push for better solar policies and encourage customer-owned rooftop solar.
Rural Electric Cooperatives are different from investor-owned utility companies in that they are non-profit organisations. This means that all revenues in excess of expenses (known as margins) are allocated back to each member-owner who contributed revenues that year.
In the state of Indiana, for example, REMCs have withdrawn from Indiana Utility Regulatory Commission (IURC) jurisdiction, as allowed by state law. This highlights the autonomy and independence of these cooperatives.
One example of a Rural Electric Membership Cooperative is Tri-County Electric (TCEMC), which serves counties in Kentucky and Tennessee. TCEMC is among the largest cooperatives in these two states, serving over 53,000 members with almost 5,500 miles of distribution lines.
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Electric cooperatives changed the way rural farmers operated
Electric cooperatives have had a profound impact on the way rural farmers operate, bringing significant changes to their lives and communities. Before the advent of electric cooperatives, rural areas lagged far behind their urban counterparts in terms of access to electricity. In the 1930s, while 90% of urban Americans had electricity, only about 10% of rural homes had electric service. This disparity left rural farmers reliant on kerosene lamps and wood stoves for lighting and cooking, impacting their productivity and quality of life.
The establishment of electric cooperatives, such as the Oklahoma Electric Cooperative and the National Rural Electric Cooperative Association (NRECA), played a pivotal role in addressing this inequality. Through the Rural Electrification Administration (REA), created by President Franklin D. Roosevelt in 1935, and the subsequent Rural Electrification Act passed by Congress in 1936, cooperatives were empowered to secure low-cost loans and bring electricity to rural communities. This marked a turning point for rural farmers, as they gained access to modern machinery and conveniences that transformed their daily lives and agricultural practices.
The impact of electrification extended beyond the farm, reshaping the social and economic landscape of rural America. With electricity came improved lighting, refrigeration, and modern appliances, elevating living standards and easing the burden of manual labour. The availability of power also encouraged the establishment of factories and businesses in these regions, diversifying local economies that had been predominantly dependent on agriculture.
Electric cooperatives were instrumental in fostering a sense of community and collective action among rural farmers. Through cooperatives, farmers worked together towards a common goal, pooling resources and advocating for their interests. This spirit of cooperation extended beyond electricity, with cooperatives providing a platform for farmers to unite and address shared challenges and aspirations related to crops, livestock, and other aspects of rural life.
Today, electric cooperatives continue to play a vital role in rural areas, with over 900 consumer-owned, not-for-profit cooperatives operating across the United States. These cooperatives are member-owned and governed by elected boards of directors, ensuring that the communities they serve have a voice in their operations. By providing affordable and reliable electricity, electric cooperatives have not only changed how rural farmers operate but have also empowered them to thrive, bridging the urban-rural divide and fostering resilience in America's heartlands.
Regarding the regulation of Sumner County Rural Electric Cooperative, it is part of the Tri-County Electric Membership Corporation (TCEMC), which serves several counties in Kentucky and Tennessee. TCEMC is among the largest cooperatives in these states, providing services to over 53,000 members-owners. While specific regulatory details for Sumner County Rural Electric Cooperative were not readily available, TCEMC as a whole is regulated by the Tennessee Valley Authority (TVA), which supplies its wholesale power.
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Sumner-Cowley Electric Cooperative serves Cheatham, Montgomery, Robertson, Stewart and Sumner counties
Electric cooperatives are member-owned, not-for-profit utilities, with each one governed by a board of directors elected from among its member-customers. In 1935, President Roosevelt established the Rural Electrification Administration, and in 1936, Senator Norris worked with Congress to pass the Rural Electrification Act. The REA allowed the federal government to provide loans to groups of farmers (cooperatives), making rural electricity affordable.
Sumner-Cowley Electric Cooperative, Inc. was founded in 1938 due to the efforts of local farmers in Sumner and Cowley counties to bring rural electric services to the area. The State Corporation Commission granted a certificate of convenience, allowing the cooperative to serve the farmers of the area. Construction of the electric infrastructure began in 1939, and the cooperative's membership rose to 402 within a year of first becoming energised.
Sumner-Cowley Electric Cooperative serves Cheatham, Montgomery, Robertson, Stewart, and Sumner counties. Providing safe and reliable electric power, the cooperative also assists with insulation, heating, and cooling needs. They offer guidance on solar power and deliver high-speed internet, phone, and video services.
Sumner-Cowley Electric Cooperative is one of the largest cooperatives in Tennessee, serving over 110,000 members. They are committed to helping their members and communities by providing knowledge and power to determine the best options for their homes and businesses. The cooperative model ensures that members have a say in how the cooperative is run and that any excess revenues are allocated back to the member-owners.
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Frequently asked questions
The Sumner-Cowley Electric Cooperative is regulated by a board of directors elected by its member-customers.
In 1935, President Roosevelt established the Rural Electrification Administration, which allowed the federal government to provide low-cost loans to groups of farmers (cooperatives) to bring electricity to rural areas. In 1936, Senator Norris worked with Congress to pass the Rural Electrification Act. Following this, Sumner and Cowley county farmers came together to bring electric services to the area. On June 27, 1938, a charter was granted, and the State Corporation Commission issued a certificate of convenience, giving the cooperative the right to serve farmers in the area.
The cooperative has played a vital role in changing how rural farmers operate and has brought an urban standard of living to rural Americans. It provides safe and reliable electric power to its members and has also contributed to the use of modern, labour-saving farm machines and equipment.
