Electric cooperatives have been the backbone of the nation’s rural electrical system for more than 80 years. Their mission and business model now face more challenges than ever, from financial to contractual to basic member control. But the opportunity is equally great, with a chance for member-driven investment to power hundreds of local economies across the rural United States.

1. R E S T O R I N G D E M O C R A C Y A N D A D VA N C I N G C L E A N E N E R G Y
RE-MEMBER-ING RURAL ELECTRIC
COOPERATIVES
John Farrell
Director of Energy Democracy, Institute for Local Self-Reliance
March 29, 2016

2. 75% of land area, 42% of distribution lines, 11% of population

3. H E AV Y O N
C O A L

4. S T U C K I N L O N G C O N T R A C T S
Great River Energy
Tri-State
Seminole Electric
Basin Electric
0 17 34 51 6820502032 2084
Typical power contract expiration date for members co-ops of…
2066
2045
2050
2055
2070

5. Averagemember-voterturnout
80%-100%
60%-80%
40%-60%
30%-40%
20%-30%
15%-20%
10%-15%
5%-10%
2%-5%
<2%
0 50 100 150 200
82
30
27
12
4
0
4
0 50 100 150 200
73
158
193
L O W PA R T I C I PAT I O N
Number of cooperatives
7 2 % H AV E L E S S T H A N
1 0 % AV E R A G E T U R N O U T !
Average turnout in cooperative board elections

6. C O - O P T U R N O U T L O W E R T H A N M O S T
O T H E R E L E C T I O N S
0%
10%
20%
30%
40%
50%
60%
70%
2004 2005 2006 2007 2008 2009 2010 2011 2012
Presidential elections
National mid-term elections
Municipal elections
Co-op board elections

7. NumberofMembers
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Voter Turnout
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
LARGER COOPERATIVES HAVE LOWER TURNOUT
Median turnout: 6.2%

8. State regulates co-ops
“Other” form of regulation
No regulation
Source: GAO, April 2015: http://
www.gao.gov/assets/670/669881.pdf
MINIMAL STATE REGULATION
n/a

9. S I G N S O F
I M P R O V E M E N T

10. R E S T O R I N G
L O C A L
C O N T R O L
FERC says local
co-operatives
can break out of
long-term
contracts with
locally procured
power*

11. E N A B L I N G
M E M B E R
I N V E S T M E N T
“pay as you save”

12. Commission-approved tariffs
Existing programs
Midwest Energy
NH Elec. Co-op
Roanoke Elec. Co-op
How$mart KY
Several co-ops offer on-bill
repayment tariffs
Central Elec. Power
Ouachita Electric
Clean Energy Works Portland

13. E X P E R I M E N T I N G W I T H
C O M M U N I T Y S O L A R

14. INCREASING TRANSPARENCY

15. www.ilsr.org
C H A N G I N G
T H E R U L E S
P R O V I D I N G
T O O L S
1 0 0 % R E N E WA B L E
L O C A L E C O N O M Y
H U M A N
S C A L E
L O C A L
O W N E R S H I P
D E M O C R AT I C
A U T H O R I T Y
I L L U S T R AT I N G
T H E V I S I O N

16. www.ilsr.org
D O W N L O A D
O U R F U L L
R E P O R T
R E A D M O R E
@johnffarrell