Cooperative
Differences
A
cooperative is a nonprofit enterprise or organization
jointly owned and equally controlled by those using
its services for mutual benefit. Customers who receive
service are members of the cooperative and, as such,
share responsibility for its success or failure along
with the benefits they receive.
As
democratic institutions, electric cooperatives afford
a large number of people-the member-owners-an opportunity
to take part in the decision-making of their cooperative's
business. All member-owners participate in the operation
of the cooperative through their votes. Each member
is entitled to one vote in cooperative elections. This
process ensures that cooperative members have controlling
authority over the cooperative's board of directors.
The one-member, one-vote concept is not only a right
of cooperative members, it is a responsibility. |
 |
Power
companies, by contrast, are controlled by stockholders who,
for the most part, do not live in the service territory of
the company. Stockholders and customers have quite different
interests. The owner of share of stock quite rightly wants
larger dividends and an increase in the market value of the
stock. The customer, on the other hand, wants lower rates
and better service.
In actual
operation, the cooperative conducts its business much the
same as any other electric utility. Its difference lies in
the ownership and how the wishes of these owners are carried
out.
Click
on the links in the Quick Links section to the left for more
information about Cooperative Differences. |
