What Are Electric Cooperatives?
What Are Electric Cooperatives? Electric cooperatives are: • private independent electric utility businesses • incorporated under the laws of the states in which they operate • established to provide at-cost electric service • owned by the consumers they serve • governed by a board of directors elected from the membership, which sets policies and procedures that are implemented by the cooperatives’ professional staff Most electric co-ops are distribution cooperatives that deliver electricity to the consumer. Some are generation and transmission cooperatives that both generate and transmit electricity to meet the power needs of distribution co-ops. In addition to electric service, many electric co-ops are involved in community development and revitalization projects, e.g., small business development and jobs creation, improvement of water and sewer systems, and assistance in delivery of health care and educational services. What Makes Cooperatives Different? Cooperatives are operated to
