What does it mean to be a part of a cooperative?

Did you know not all electric utilities are the same? Some utilities are investor-owned (IOUs) while [Co-op]’s members are partial owners of a cooperative. While both provide electrical services to the region, there are some key differences between the two types of utilities – and cooperatives have some impressive benefits!

Investor-Owned Utilities (IOUs)

Ownership structure

• Investor-owned utilities are for-profit corporations that are typically publicly traded in the stock market. Profits are distributed to shareholders.

Board of directors

• IOUs have a board of directors that is chosen by shareholders with a goal of maximizing shareholder value. The board is often composed of folks outside of the communities being served.

Primary business objectives

• An investor-owned utility's primary business objectives include investments that yield the highest return for shareholders. Their goals are often guided by profit.

Who they serve

• Investor-owned utilities typically serve more urban areas and have many more customers on a mile of power line than a cooperative.

Electric Cooperatives 

Ownership structure

• Cooperatives are not-for-profit organizations that are member-owned and controlled. Profits made by co-ops are either reinvested in the co-op or returned to the members as capital credits or scholarships.

Board of directors

• As a cooperative, our board of directors is made up of members from around your region - your friends and neighbors. Representatives are voted in by the membership and serve a three-year term on the board.

Primary business objectives

• Cooperatives operate first and foremost for their membership. our primary priority is always to act in the best interest of our members. A few of the guiding principles for all cooperatives include the prioritization of reliability and the well-being of the community.

Who they serve

• Electric cooperatives were formed to meet the growing electrical needs of rural communities  when larger utilities wouldn't. They were formed by rural people to serve their rural neighbors, and that service continues today.