What Is A Cooperative?

Cooperative Principles

1. Open and Voluntary Membership
Membership in a cooperative is open to all persons who can reasonably use its services and stand willing to accept the responsibilities of membership, regardless of race, religion, gender, or economic circumstances.

2. Democratic Member Control
Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Elected representatives (directors/trustees) are elected from among the membership and are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote); cooperatives at other levels are organized in a democratic manner.

3. Members’ Economic Participation
Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital remains the common property of the cooperative. Members allocate surpluses for any or all of the following purposes: developing the cooperative; setting up reserves; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.

4. Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control as well as their unique identity.

5. Education, Training, and Information
Education and training for members, elected representatives (directors/trustees), CEOs, and employees help them effectively contribute to the development of their cooperatives. Communications about the nature and benefits of cooperatives, particularly with the general public and opinion leaders, helps boost cooperative understanding.

6. Cooperation Among Cooperatives
By working together through local, national, regional, and international structures, cooperatives improve services, bolster local economies, and deal more effectively with social and community needs.

7. Concern for Community
Cooperatives work for the sustainable development of their communities through policies supported by the membership.

As consumer-owned utilities, electric cooperatives differ from investor-owned utilities, such as PGE and PacifiCorp, in that they are non-profit companies, owned by their members - not stockholders. They are governed by locally-elected boards and are not rate-regulated by the Oregon Public Utility Commission as are the investor-owned utilities.

Unlike other types of consumer-owned utilities (People's Utility Districts and Municipal Utilities) electric cooperatives are not government entities and do not have governmental powers such as taxing authority or the ability to issue bonds. Cooperatives are private companies.

Oregon's 18 electric cooperatives are distribution utilities serving approximately 10% of the state's electricity consumers. Electric cooperatives are located in 32 Oregon counties, covering 65% of the state's geography and traversing some of its most rugged terrain with over 26,000 miles of distribution line. Cooperatives average 7 customers per mile of line.

Beginning in the 1930's, Oregon's electric cooperatives were organized to bring electric power to under-served rural areas. Today, these utilities, as preferred customers of the Bonneville Power Administration, provide at-cost electric service to residential, industrial, commercial and irrigation consumers. They also address other rural community needs by providing services such as telecommunications, high-speed internet and propane. Learn more here.

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