What Is an Electric Cooperative?
An electric cooperative is a private, not-for-profit, locally owned company whose purpose is to safely deliver electricity to its members at the most affordable price possible. Unlike a typical utility, a co-op is owned by the very members it serves and operates for their benefit — not to generate profits for outside investors. That's the "co-op difference."
Member-Owned and Operated
If you receive electricity from a cooperative, you're automatically a member-owner of that co-op — not just a customer. With that comes the privilege of Democratic Control, one of our basic co-op principles: one member, one vote. Through this democratic process, member-owners approve the co-op's bylaws and elect who will serve on the Board of Directors. The board oversees the cooperative, setting strategic and financial goals, policy, and rates. In turn, the board hires a Chief Executive Officer (CEO) to carry out those strategies and goals and manage the co-op's day-to-day operations.
All electric cooperatives operate according to seven guiding cooperative principles, which serve as the foundation for daily business practices nationwide.
The Advantages of Electric Cooperatives
- Member-focused, not profit-focused: You're an owner, not just a customer.
- Service-driven: Co-ops are dedicated to bringing electricity to rural areas that commercial utilities often overlook, since those companies can earn more profit serving urban centers and businesses.
- Democratic: Every member can vote in board elections, help shape policy, and share ideas that influence the cooperative's direction.
- Community-focused: Co-ops work to improve the sustainability and well-being of the communities they serve.
- Financially accountable: Revenues, or margins, are returned to members in the form of patronage capital credits.
A Nationwide Network
Electric cooperatives aren't a small niche — there are nearly 900 of them across the country, serving 42 million people in 48 states and powering 56% of the nation's landmass. Every local co-op, including ones like EnerStar, is part of this larger network, working together for a brighter, more community-focused future. Click here to learn more about the National Rural Electric Cooperative Association (NRECA).