How Cooperatives Work

What is an electric cooperative?

• Electric cooperatives are privately owned businesses established to supply electricity to their member-owners.
• Electric co-ops are owned by the people who use the power the co-op provides. Its customers are also its owners.
• Electric co-ops operate on a not-for-profit basis, with excess margins returned to the consumer either in the form of patronage capital or in stable rates.
• Electric co-ops are governed by a board of directors elected from the membership.
• Any member may run for the board and all members are asked to participate in an annual membership meeting at which board members are elected.
• Electric co-ops adhere to the seven guiding principles of all cooperatives: Voluntary and open membership, democratic member control, member economic participation, autonomy and independence, education, training and information, cooperation among cooperatives and concern for community.

Co-Mo’s three-tiered system

Missouri has a well-defined and well-run system of electric cooperatives that generate, transmit and distribute electric service to the rural residents of the state.

1. Our power is generated by Associated Electric Cooperative Inc., based in Springfield, Mo. Associated generates power to serve 51 distribution cooperatives in Missouri, southern Iowa and northeast Oklahoma.
2. That power is transmitted throughout Missouri by six transmission cooperatives. Our regional transmission cooperative is Central Electric Power Cooperative, based in Jefferson City, Mo., which owns and maintains the substations that serve our system.
3. The electricity is delivered directly to the members of Missouri by 40 distribution cooperatives. Co-Mo Electric is a distribution cooperative.