Electric cooperatives create and buy wholesale power, arrange for transmission and distribute the power, in order to serve members. Electric co-ops often offer additional services — like energy conservation, load management and other programs — in order to make their services as cost-effective as possible for their members. Bluebonnet, like most electric co-ops, is a non-profit organization.

Electric co-ops are:

• private, independent electric-utility businesses;
• owned by the consumers they serve;
• incorporated under the laws of the states where they operate;
• established to provide at-cost electric service; and
• governed by a board of directors elected by the membership, which establishes the policies and procedures implemented by the organization’s professional staff.

The purpose

Back in the 1930s, almost all urban areas of the United States had had electricity for a half-century. But beyond the city limits, where providing electric service wasn’t lucrative, rural families were still stuck in the literal dark age. Farmers and ranchers decided to take matters into their own hands, and organized cooperatives to provide local, consumer-owned electric service. America’s first electric cooperative was established in 1935 in Bartlett, Texas.

Today, 930 electric cooperatives serve 36 million people, or 12% of our country’s population, within 47 states. They own and maintain 43% of power lines nationwide, generate 5% of total electricity and distribute about 10% of total kWh within the U.S. Electric cooperatives employ about 60,000 Americans. Statewide, 75 electric cooperatives serve almost 3 million Texans within 231 counties.

The principles

All cooperative businesses adhere to these seven guiding principles:

Voluntary and Open Membership - Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities on membership, without gender, social, racial, political, or religious discrimination.

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

Members' Economic Participation - Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition on membership.

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 by their members and maintain their cooperative autonomy.

Education, Training and Information - Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public, particularly young people and opinion leaders, about the nature and benefits of cooperation.

Cooperation Among Cooperatives - Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.

Concern for Community - While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.