How are electric cooperatives different from investor-owned utilities (IOUs)?
A. Locally based and democratically managed, cooperatives have, for decades, provided their members the lowest cost power and dependable local service. Operating as non-profit entities, cooperatives return unused capital to their members. This is in stark contrast to the IOU business model, whose bottom line goal is profitability. Understanding the fundamental differences between IOU and cooperative businesses, Texas lawmakers granted cooperatives and municipalities the choice to opt-in or opt-out of the deregulated market. For 65 years, Sam Houston Electric has been looking after the best interests of our members. Under the member-owned cooperative business model, our incentive is not to gain a profit; it is to find the best deals possible and pass the savings on to our members. Unlike IOU customers, our members can rely on us to do the shopping for them. Furthermore, we leverage our expertise to negotiate prices and team up with other cooperatives to purchase power in bulk – another
Related Questions
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