Rural electrification’s past leads to a bright future

Life without electricity is hard to imagine, but only 70 years ago it was still a dream for many of Michigan’s rural residents. By the 1930s, 90 percent of rural Americans lived, worked and farmed without the benefits of electricity, despite the fact that electricity had been available to residents of cities and towns for up to 50 years.

In 1935, President Roosevelt created the Rural Electrification Administration (REA) to speed electrification to the countryside and to provide jobs.

Hoping to encourage investor-owned utilities to supply rural power, Congress passed the Rural Electrification Act, which authorized REA to provide low-interest loans. Seeing little profit in serving sparsely populated areas, most investor-owned utilities did not expand into the countryside. Widespread rural electrification began only when farmers and other rural residents themselves formed electric cooperatives.

Electric cooperatives provide reliable power to half of Michigan

Now, nine distribution cooperatives provide power to more than 650,000 Michigan citizens in rural areas covering all or part of 59 counties — about half of the state’s land area. The co-ops supply power to homes, farms, vacation homes, businesses and rural industry.

As a group, Michigan electric cooperatives provide the best continuity of service in the state, based on a study by the Michigan Public Service Commission, which regulates electric cooperatives and other utilities. That’s comforting, since co-ops will continue to provide such service even after customers have the opportunity to choose their power supplier.

The Michigan co-ops join a network of nearly 1,000 electric cooperatives nationwide working to supply the power that the nation’s countryside needs to live comfortably, work efficiently and grow economically.

Electric cooperatives work together for you

Although every electric co-op is unique, they share important features:

Earnings are returned to the members.
High quality service at reasonable prices is the goal of your co-op. Any earnings in excess of operating expenses are returned to the members and/or invested in the co-op according to the co-op’s bylaws.

Co-ops are controlled by their members.
Each member has one vote in cooperative elections. Board members are chosen from the co-op’s membership and are responsible for hiring the manager and setting policy. Every member has a say in the co-op’s bylaws.

Co-ops share resources.
Co-ops work together through state and national associations to be more efficient and financially strong.

Some co-ops own Wolverine Power Supply Cooperative, which provides wholesale electricity.

All of the co-ops are members of the Michigan Electric Cooperative Association (MECA), through which they:

• Communicate and advocate electric cooperative needs and concerns to national and state governments;
• Publish Michigan Country Lines magazine, which provides members with information about their co-op and other members;
• Conduct safety and job training programs for employees;
• Operate an Emergency Assistance Plan, enabling co-ops to share resources and personnel to get power restored quickly following major outages;

• Sponsor youth programs, such as Michigan Electric Cooperative Teen Days, and a Washington, D.C., Youth Tour.

  The National Rural Electric Cooperative Association provides similar services on a national level.

  Think of your electric co-op as a big partnership.

  In a co-op, every member is important. A co-op is an independent business that provides electric power you use daily in your home, farm or business. This co-op also belongs to you — as a member, you are an owner in this business.

  As a customer, you are concerned with the quality of the service and the fairness of the price you pay. As a member, your participation helps the co-op make sound business decisions.

  In a co-op, you help choose the board of directors and determine the bylaws of the business. You also help make major decisions regarding co-op policy and goals.

  In short, you need your co-op to provide the affordable, reliable power you’ve come to depend on. And your co-op needs you to have an active voice in the challenges of running a utility business that provides the service you need and want.