The Cooperative Way
A cooperative is a not-for-profit organization owned by its consumer-members. 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. Profits are either reinvested in the cooperative or allocated to members as capital credits.
Cooperatives in the United States
More than 47,000 cooperatives exist in the United States, offering products and services from health care and insurance to food, hardware, childcare and financial services.
Electric cooperatives
- The United States has 864 distribution cooperatives and 66 cooperatives that generate and transmit electricity.
- 40 million people in 47 states receive electricity from a cooperative.
- Electric cooperatives serve 12 percent of the nation’s population but 75 percent of the nation’s landmass.
- Electric cooperatives own and maintain 42 percent of the nation’s miles of electric distribution lines.
Cooperative principles
Regardless of the services provided, cooperatives all follow the same seven guiding principles.
- Voluntary and Open Membership — Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
- Democratic Member Control — Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions.
- Members’ Economic Participation — Members contribute equitably to, and democratically control, the capital of their cooperative.
- Autonomy and Independence — Cooperatives are autonomous, self-help organizations controlled by their members.
- Education, Training, and Information — Cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperative.
- Cooperation Among Cooperatives — Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
- Concern for Community — While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.