Rural Electric Cooperatives

What is an electric cooperative?

An electric cooperative is a nonprofit utility owned by the people it serves. Many were formed decades ago when larger utilities did not extend lines into thinly settled country. Members buy their power from the co-op and have a vote in choosing the board.

Cooperatives vary in size and structure. Some buy power from a wholesale supplier, and some own generation. Your co-op's website, annual report and bylaws explain its setup.

USDA Rural Development has published material on cooperatives, and the co-op itself can tell you how it relates to federal programs.

How is a co-op different from other utilities?

Members, not outside shareholders, own the co-op. Surplus money, called margins, is generally returned to members in some form or reinvested, under policies the board sets. A co-op usually has fewer customers per mile of line than a large utility.

State oversight differs. Some states regulate co-op rates and others leave that largely to the co-op's board, so ask your state's utility commission how it works where you live.

A cooperative is also a business with obligations to lenders and wholesale suppliers, so some decisions are limited by contracts and debt. Ask the board to explain constraints when you ask for a change, so your request is realistic and your questions are specific.

How does member governance work?

Members elect a board of directors, usually at an annual meeting, and the board hires a manager and sets policy. Elections may be held by mail, online or in person, and the rules for nominations are in the bylaws.

Turnout is often low. Members who attend annual meetings, ask questions and consider running for the board can have a real influence.

Ask the co-op how to nominate a candidate, how to vote and how to see the budget.

• Read the annual report and bylaws
• Attend the annual meeting
• Ask how directors are nominated and elected
• Ask how margins are returned to members

What should you ask about outages and reliability?

Ask how the co-op communicates outages, how to report one and how long restoration usually takes in storms. Ask whether it maintains right-of-way by trimming trees, and what you can do about trees near lines on your property. Never trim near power lines yourself.

Keep the outage number in your phone. Register for alerts if the co-op offers them, and tell the co-op if someone in your home relies on electric medical equipment.

Storm restoration usually follows a pattern, starting with lines that serve hospitals and other critical needs, then main lines, then neighborhoods and individual services. Knowing this helps set expectations when your own lane is last in line.

How do you read your bill?

Bills usually include a service charge and a usage charge, and sometimes adjustments for fuel or purchased power. The co-op can explain every line. Ask how rates are set, how often they change and what assistance exists if you fall behind.

If you have solar or plan to, ask about the co-op's rules for connecting and for net metering or credits, which differ from co-op to co-op.

How do co-ops help beyond power?

Some co-ops offer energy audits, rebates, community grants, scholarships and in some places broadband. Offerings vary by co-op, so ask what is available and what the eligibility rules are.

A few co-ops provide fiber internet to members, either directly or through a subsidiary. Ask whether that is planned in your area.

Bring practical questions to the co-op's annual meeting, such as how storm costs are paid for and how the co-op plans for new demand. A question asked in public often gets a more complete answer than one sent by email.

What are the limits of co-op democracy?

In practice, many members never vote or attend. Boards may be dominated by long-serving directors, and information may be hard to find. Critics argue that members have too little say in some co-ops.

If you want to improve this, learn the rules, join with other members and be persistent and respectful. Ask a licensed attorney if you have a legal question about bylaws or governance.

Newer co-op members should also learn the history. Ask older members how the co-op began and what it has survived, since that context explains many current policies and attitudes.

Last reviewed: November 12, 2026. Written by the Rural Farm Life Editorial Team. See our editorial policy.