What Is An Electric Cooperative

Farmers and ranchers formed america s electric cooperatives more than 75 years ago to secure electricity in order to better their lives.

What is an electric cooperative. An electric cooperative is a private non profit company whose purpose is to deliver electricity to its customers or members. Since most recs operate as monopolies consumers must become cooperative members if they wish to purchase electricity. Each rural electric cooperative rec customer is a member owner and membership is a requirement of all customers. Electric cooperatives are owned and controlled by the people they sell electricity to and exist solely to provide electricity to members at the lowest cost possible.

The members of the cooperative are also its customers. Margins are either reinvested in the cooperative or allocated to members as capital credits. Electric co op facts figures from booming suburbs to remote rural farming communities america s electric cooperatives are energy providers and engines of economic development for more than 20 million american homes businesses farms and schools in 48 states. A cooperative is a not for profit organization owned by its members.

Members are required to purchase all of the electric power for a specified location from the cooperative. New hampshire electric cooperative is an electric utility that puts you first. Since 1941 the york electric cooperative has provided dependable and affordable electric service that has helped families and businesses in the area continue to grow and prosper. Profits are either reinvested for infrastructure or distributed to members in the form of patronage or capital credits which are dividends paid on a member s investment in the cooperative.

A utility cooperative is a type of cooperative that is tasked with the delivery of a public utility such as electricity water or telecommunications to its members. Electric cooperatives are private independent electric utilities owned by the members they serve. As a cooperative they are required to fulfill two requirements including reinvesting revenue into their service area communities through stable rates and infrastructure or returning it to members through patronage capital. Today co ops bring that same spirit of purpose and cooperation to the changing needs of a new generation of cooperative owners.

Cooperatives also follow a democratic process not board governance.