A VIABLE ALTERNATIVE TO THE BIG ENERGY PROVIDERS?

Whilst researching into alternative energies, I came across some information about the growing number of cooperatives that are in existence all over the country, and not just here in the United States, but all over the world.

For some time now, most of us have been tightening our financial belts, scrutinizing our bills and service of the utility or service providers. Almost daily in the national press, the profits of the large corporations are fuelling anger, dismay and disbelief. The focus seems to have changed from high local service levels to rationalizing of services and increasing the return to investors.

Over the years, increased prices, lower service levels and the feeling of not being anything more than an account number has led groups of individuals and businesses to join together to find a solution and form cooperatives or associations to take over the supply of the service to their district.

A brief history and the principles of a cooperative.

The cooperative movement began in Europe, growing primarily Britain and France, in the 19^th century. The first recorded cooperative in Europe though was the Fenwick Weavers Society, Scotland in 1769. By the 1830’s there were hundreds that had been formed during the industrial revolution.

In 1844, the Rochdale Society of Equitable Pioneers, in England, established the Rochdale Principles by which they would conduct the society’s business ( see list below). To this day, the Rochdale Principles are used in the formation and running of all cooperatives worldwide.

In America the Philadelphia Contributionship Mutual Insurance, founded by Benjamin Franklin in 1752 is the oldest cooperative and continues today. Throughout the 19^th century, coops began to be founded, and in 1920, there were 2600 coops recorded. During the Great Depression, many more coops were founded under Franklin Roosevelt’s New Deal. The Credit Unions are the biggest legacy from that period.

The first electric coop was formed in July 1941, the Delaware County Electric Association and in April 1942 the Rural Electric Cooperative Law was passed. Today, the National Rural Electric Cooperative Association has more than 900 not-for-profit cooperatives in their membership and they are a big advocate of renewable and sustainable energy, the website is well worth a visit.

The Rochdale Principles.

1st Principle: Voluntary and Open Membership

Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept responsibilities of membership, without gender, social, racial, political or religious discrimination.

2nd Principle: Democratic Member Control

Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote), and co operatives at other levels are also organised in a democratic manner.

3rd Principle: Member Economic Participation

Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.

4th Principle: Autonomy and Independence

Co-operatives are autonomous, self-help organisations controlled by their members. If they enter into agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.

5th Principle: Education, Training and Information

Co-operatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their co-operatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of co-operation.

6th Principle: Co-operation Among Co-operatives

Co-operatives serve their members most effectively and strengthen the Co-operative Movement by working together through local, national, regional and international structures.

7th Principle: Concern for Community

Co-operatives work for the sustainable development of their communities through policies approved by their members.

The Advantages of joining a Cooperative

·         Can use the larger volume of electric supply to obtain discounts for members.

·         All non profit cooperatives receive tax exempt status.

·         All electric utilities can receive some form of federal funding.

·         Independence and member control.

The Disadvantages of joining a Cooperative

·         If members don’t participate and assist in some way in the running of the cooperative, the purpose of the cooperative is lost.

·         If service contracts are not properly in place, repairs to infrastructure can be expensive to members. Especially so in rural communities, where there is likely to be miles more cable.

Summary

So whether starting up a new cooperative or joining an existing one, there can be substantial savings made in a well run cooperative. Many existing members comment, on the various websites, that they feel much happier in having more control and all the monetary benefits are passed back to them. Now this will not be for everyone, other commitments and frequently travelling away from home are just two possible reasons that a person cannot be an active participant.

For those of you that are interested in learning more, below is a list of useful sources of additional information:

http://www.nreca.coop/Pages/default.aspx  National Rural Electric Cooperative Association.

http://www.touchstoneenergy.com/Pages/default.aspx  Touchstone Energy

http://www.cooperativeenergy.coop/  Cooperative Energy (UK)