Cooperative Principles
Electric cooperatives are private, independent electric utilities, owned by the members they serve. As democratically governed businesses, electric cooperatives are organized under the Cooperative, or Rochdale, Principles, anchoring them firmly in the communities they serve and ensuring that they are closely regulated by their consumers.
Electric cooperatives are different than other forms of business, and co-op members notice this difference. For one thing, co-ops put consumers first because the consumers are the owners. Rather than rewarding outside investors with its profits, a co-op returns surplus revenue to its members in proportion to how much they use the co-op. This democratic approach to business results in a powerful economic force that benefits the co-op, its members and the communities it serves.
In addition, co-ops are locally owned and operated. When members call the co-op, they are talking with their neighbors. Both of these combine to make co-ops highly responsive to their members’ needs.
From the outside, many co-ops look like any other business, since a co-op provides products and services like conventional businesses do. But it's what goes on behind the scene that makes cooperatives different. They operate under the following seven guiding principles:
1. Voluntary and Open Membership
Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership.
2. Democratic Member Control
Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions.
3. Members’ Economic Participation
Members contribute equitably to, and democratically control, the capital of their cooperative.
4. Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members.
5. Education, Training, and Information
Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives.
6. Cooperation Among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together.
7. Concern for Community
While focusing on member needs, cooperatives work for the sustainable development of their communities.