What Is Rural Electric Cooperative

Most rural electrification is the product of locally owned rural electric cooperatives that got their start by borrowing funds from rea to build lines and provide service on a not for profit basis.

What is rural electric cooperative. The association which was founded in 1942 unites the country s generation transmission and distribution cooperatives. An electric cooperative is a private non profit company whose purpose is to deliver electricity to its customers or members. Originally when rec was founded it had approximately 100 members however today rec has over 2 900 miles of distribution lines serving power to more than 11 000 meters. Members are required to purchase all of the electric power for a specified location from the cooperative.

Profits are either reinvested for infrastructure or distributed to members in the form of patronage or capital credits which are dividends paid on a member s investment in the cooperative. Since most recs operate as monopolies consumers must become cooperative members if they wish to purchase electricity. We deliver reliable electricity and service at the lowest possible cost. The national rural electric cooperative association nreca is the national service organization that represents america s electric cooperatives.

Rea is now the rural utilities service or rus and is part of the u s. Welcome to the missouri rural electric cooperative website. Rural electric convenience cooperative. Rural electric cooperative rec was incorporated in 1938 by rural residents.

As a cooperative they are required to fulfill two requirements including reinvesting revenue into their service area communities through stable rates and infrastructure or returning it to members through patronage capital. Gobnob wind turbine rural electric lines illinois youth tour in washington recc linemen annual meeting registration postcards showing lowered facility charge pulling underground conduit. The national rural electric cooperative association nreca is the organization that represents the interests of over 900 electric cooperatives in the united states to various legislatures independent electric utilities are not for profit and are owned by their members. Our cooperative serves areas in lewis marion monroe ralls and shelby counties in northeast missouri.

Electric utilities there are many differences between electric cooperatives and commercial utilities but most importantly cooperatives have member owners not just customers. Nreca resources nreca represents more than 900 consumer owned not for profit electric cooperatives public power districts and public utility districts across america. Each rural electric cooperative rec customer is a member owner and membership is a requirement of all customers.