Quick Fact: Privileges and Obligations of Electric Utility Distribution Cooperative Members

Electric utility distribution cooperatives operate on a member-owned, nonprofit basis, ensuring that the communities they serve receive reliable and affordable electricity. As a member of such a cooperative, individuals enjoy certain privileges while also assuming specific obligations that contribute to the cooperative’s sustainability and efficiency.

Privileges of Cooperative Members

1. Electric Service at Cost-Based Rates
   Cooperative members receive electricity at cost-of-service rates rather than market-driven prices. This means that rates are designed to cover operational costs, maintenance, and system improvements rather than generating profits for shareholders.
2. Democratic Participation
   Members have the right to vote in board elections, ensuring representation in key decision-making processes. Each member has an equal vote, regardless of energy usage, reinforcing the cooperatives democratic structure.
3. Capital Credits
   Because cooperatives operate on a not-for-profit basis, any excess revenue (margins) is allocated to members as capital credits. These credits are returned to members over time as financial conditions allow, effectively lowering the long-term cost of electricity.
4. Access to Member Services and Programs
   Cooperatives often offer additional benefits, such as energy efficiency programs, rebates, community development initiatives, and educational resources. Members can participate in these programs to enhance energy savings and sustainability.
5. Local Control and Representation
   As community-based organizations, electric cooperatives are managed by local boards of directors elected from the membership. This ensures that policies and priorities reflect the needs of the members they serve.

Obligations of Cooperative Members

1. Providing Easements for Infrastructure
   In exchange for electric service, members grant necessary easements to the cooperative for infrastructure development, access and maintenance. This ensures reliable service and allows for system upgrades without unnecessary delays and expenses
2. Financial Responsibility and Payment
   Members are responsible for timely payment of electric bills. Consistent payment helps the cooperative maintain operations, invest in improvements, and keep rates stable for all members.
3. Participation in Governance
   Engaged membership strengthens cooperative governance. Members are encouraged to attend meetings, vote in board elections, and provide input on policies affecting the cooperatives future.
4. Compliance with Cooperative Policies
   Members must follow cooperative policies, including safety regulations, meter access requirements, and load management programs. Compliance helps maintain service reliability and operational efficiency.
5. Support for Cooperative Sustainability
   Members play a role in ensuring the long-term sustainability of the cooperative by advocating for responsible energy use, supporting cooperative initiatives, and encouraging community engagement.
6. Support Right-Of-Way maintenance and Wildfire prevention practices
   OPALCO has an aggressive right-of-way clearing program and regularly trims and removes danger trees. Co-op member can help by supporting crews and OPALCO get this work done.

By upholding these privileges and obligations, cooperative members contribute to a resilient, community-focused electric utility that prioritizes affordability, reliability, and member-driven decision-making.