Why Electric Cooperatives are Special
From booming suburbs to remote rural communities, America’s electric cooperatives are energy providers and engines of economic development. Electric cooperatives keep the lights on and play a vital role in transforming communities. Cooperatives power 56% of the American landscape (electric.coop/electric-cooperative-fact-sheet).
Electric cooperatives are special because they are member-owned and member-driven, prioritizing service to their community over profit. Unlike investor-owned utilities (for-profit organizations), electric cooperatives are focused on providing responsible, reliable and reasonably priced electricity to their members, often in rural areas where other utilities found it unprofitable.
Here’s a more detailed look at what makes cooperatives special:
Member-owned and controlled: Each member of the cooperative is also an owner (a shareholder), with a voice in how the cooperative is run.
Not-for-profit: Cooperatives operate on a cost-of-service basis, meaning they aim to cover their expenses and reinvest in the system, rather than maximizing profits for shareholders.
Community focus: Cooperatives are deeply rooted in their communities, with a strong commitment to serving the specific needs of their members and contributing to local economic development.
Unique service model: Cooperatives often offer personalized service, with readily accessible customer support and a focus on member education and engagement.
Historical role in rural electrification: Cooperatives played a crucial role in bringing electricity to rural areas that were previously underserved by investor-owned utilities.
Focus on long-term sustainability: They can take a longer-term view of investments, including in areas like broadband, because they are not driven by short-term profit demands.
Capital credits: Cooperatives return excess revenues to members through capital credits, providing a financial benefit to members.
Local jobs and expertise: Cooperatives often employ local residents and offer a range of career opportunities in the energy sector.
