A co-op is founded when people with a similar need form an organization to provide goods or services, like a farmers market food co-op or financial services credit union co-op.
Electric co-ops were formed in much the same way to provide electricity to rural areas abandoned by for-profit electric utilities. There are no Paulding Putnam electric customers. Our Member-Owners have an equal voice in the co-op’s direction and certain rights that are quite different from those who are customers of a for-profit utility, owned by shareholders. Members gain a share of the co-op ownership as they use our services. Our net margin after expenses and reserves does not belong to the utility; it belongs to our Members. The margins must be used either to improve and maintain operations or be distributed back to Members. This is a major, unique and beneficial aspect of a cooperative.
Electric cooperatives are: private, independent electric utility businesses owned by the members they serve incorporated under the laws of the states in which they operate established to provide at-cost electric service governed by a board of trustees, elected from the membership, who set policies and procedures that are implemented by the cooperatives’ professional staff.