By Dallas Aho, Ontonagon, General Manager
Electricity may flow through the same outlets no matter where you are in the U.S., but the companies delivering that power aren’t all alike. In fact, the type of electric utility that serves your home can make a big difference in how decisions are made, how much you pay, and how connected your utility is to your community.
Across the country, three types of organizations provide electricity: investor owned utilities (IOUs), public power systems, and electric cooperatives. IOUs serve about two-thirds of Americans and are typically large, for-profit corporations. Public power systems, owned by local governments, serve about 15%. Electric cooperatives—like ours—serve around 13%, primarily in rural and smaller communities.
What sets co-ops apart is simple: We’re not-for-profit, locally owned, and community focused.
Service Over Profit
Unlike IOUs, co-ops are not driven by shareholders or stock prices. Instead, our mission is to provide reliable, affordable power to our members—who also happen to be our owners. There are no profits funneled to outside investors. Any extra revenue is either reinvested into the system or returned to members as capital credits.
Local Control and Accountability
Co-ops are governed by a board of directors elected from among our members. These directors are your neighbors. They live in the same communities, understand local needs, and make decisions based on what’s best for the membership—not for Wall Street.
If you have a question or concern about your service, you don’t have to track down someone at a far-away corporate office. You can speak directly with your local board or co-op staff—people who work and live where you do.
Serving Where Others Won’t
Most co-ops were founded because investor-owned utilities didn’t want to serve rural areas, where fewer homes per mile made building power lines less profitable. That’s still true today: Co-ops average only about 8 members per mile of line, compared to 32 for other utilities. That means more infrastructure to maintain with less revenue. Yet co-ops work hard to keep rates as low as possible while maintaining reliability.
Community Commitment
Electric cooperatives don’t just deliver power—they invest in their communities. From sponsoring local events to supporting economic development, co-ops are committed to improving the quality of life where they serve. We provide jobs, pay taxes, and support local schools, nonprofits, and emergency services.
Working Together for Stronger Service
Another thing that sets co-ops apart is our commitment to cooperation. Through partnerships with other co-ops, we share resources, build joint projects like solar fields, and improve service reliability. This spirit of collaboration, guided by the Seven Cooperative Principles, ensures that co-ops remain innovative and resilient, no matter what challenges come our way.
Regulated, Responsible, Reliable
Like all electric utilities, co-ops are regulated by state and federal agencies, which oversee safety, reliability, and pricing. But what makes co-ops truly unique is our member-first mindset and our deep local roots.
When you’re part of an electric co-op, you’re not just a customer—you’re an owner, a voter, and a vital part of a community-powered organization.
