Congressman Jim Cooper’s Report on Co-ops

Published 19 102010 by admin

ELECTRIC CO-OPERATIVES: FROM NEW DEAL TO BAD DEAL?
by REPRESENTATIVE JIM COOPER

Most people who live or work in rural America must buy their electricity from
their local co-operative, a unique and largely unregulated type of utility. Electric
co-ops are owned by their customers who are called “members.” This Policy
Essay by Congressman Jim Cooper focuses on the primary obligation electric
co-ops owe their members: “at-cost” service, i.e., the lowest feasible electric
bills. To meet this obligation co-ops must provide low electric rates and timely
return of equity. They must also reduce the quantity of unneeded electricity purchased.
This Essay demonstrates that most distribution co-ops have a financial
incentive to sell more electricity, not less. It also shows that co-ops have sought
to conceal information from their members—information to which owners are
entitled in other business contexts.

For more, download the whole report