The National Rural Electric Cooperative Association (NRECA) is the national service organization dedicated to representing the national interests of cooperative electric utilities and the consumers they serve.
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
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 provide at-cost electric service to their consumer-owners. On the other hand, investor-owned utilities are operated to maximize profit for the shareholders. A co-op's net margin above expenses and reserves does not belong to the utility; it belongs to the individual consumer-owners of the co-op. The margins must either be used to improve or maintain operations or be distributed to the co-op's consumer-owners.
For more information, please visit http://www.nreca.coop