By Brent Bischoff, GM/CEO Coos-Curry Electric Cooperative
We all know it is not economical to purchase and run our own electric generators to meet our ongoing electricity needs. Ivan Laird, the founding member of Coos Electric Cooperative, knew this.
His need for electricity to economically grow his rural business motivated him to organize Coos Electric Co-op in 1939.
Retail electricity distribution is a capital-intensive business, and the assets, once built, last for decades. Coos Electric Co-op built its first distribution line with a $119,500 loan made available through the Rural Electrification Act. The line spanned 84 miles serving 255 co-op members in the Daniels Creek, Sumner, McKinley, Fairview and Sitkum areas of Coos County. That equates to about $469 per member. It sounds like a bargain, but that was in 1940.
Accounting for inflation since then, $469 today would equal $10,162.
Does that mean those original co-op members were “on the hook” for today’s equivalent of $10,162? No. The Articles of Incorporation state that “…no member shall be individually liable or responsible for any debts or liabilities of the Corporation.” The cooperative corporation takes on the debt, builds and operates the electric distribution system, and recovers the cost of operations and payment on the debt through the electric rates. The members pay only for the electric services they receive. The cooperative assumes the risks, and the members receive the benefits of the services provided at cost.
This model has been proven successful by rural cooperatives of all sorts since the early 1900s. But service at cost is only one benefit of the cooperative model. Co-ops are owned by their members, governed by member-elected boards, create local jobs, are operated by trusted friends and neighbors who are members themselves, and have the best interest of their members and communities at heart. Nearly 900 electric cooperatives today serve 56% of the U.S. landmass and stand as a pillar strengthening rural America.
The CCEC Board of Directors understands and uses the same cooperative model today. Like Ivan Laird used the cooperative model to bring electricity to the south coast of Oregon, the CCEC board organized Beacon Broadband under the same principles to bring the new essential utility of high-speed fiber broadband to our co-op members.
Your Vote Matters
If you haven’t already exercised your right to vote in the election of CCEC directors, I encourage you to vote now. Candidates are nominated from within their districts, but all co-op members get to vote for every board seat up for election. Two seats are on the ballot this year, and both are contested. Your vote is important!