Indiana’s electric cooperatives operate according to the seven cooperative principles. These principles help guide the operations of all co-ops throughout the world and form the basis of the cooperative spirit to this day.
 
These seven principles are: 

1. Voluntary and Open Membership
2. Democratic Member Control
3. Members’ Economic Participation
4. Autonomy and Independence
5. Education, Training and Information
6. Cooperation Among Cooperatives
7. Concern for Community

 
Let’s do a deep dive into what these principles mean.
 
#1 - If you use a cooperative’s services, you’re a member
Just as America was founded on the belief everyone is created equal, cooperatives hold true to a similar concept: voluntary and open membership. This principle states that “cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, political, racial or religious discrimination.”
 
An electric cooperative is not an exclusive club open only to specific types of people. All you have to do is live or have a business in cooperative territory – and be a consumer of the cooperative’s services. It’s as simple as that.
 
Since cooperatives do not discriminate based on someone’s gender, social standing, political stance, race or religious beliefs, their consumers are diverse. Consumers are encouraged to play active roles in their cooperative by attending cooperative-sponsored events — such as the annual meeting — and even running for positions on the cooperative’s board. Stay informed about what is happening at your cooperative by reading its monthly magazine and checking out your REMC’s social media accounts. By knowing about your cooperative’s programs and activities, the challenges affecting the electric industry, and the unique benefits available to you, you can maximize your role as a cooperative consumer.
 
#2 - Who’s in charge?
Consumers like you control the cooperative
The second cooperative principle, “democratic member control,” addresses one of the most significant benefits of being a cooperative consumer.
 
Cooperative consumers, also known as cooperative “members,” own their cooperative and, therefore, can help set policies and make decisions regarding the cooperative. One of the opportunities to do this happens each year at the cooperative’s annual meeting. The annual meeting typically includes fun activities like attendance incentives, prize drawings and entertainment. Cooperatives also conduct important business at their annual meetings.
 
Unlike many businesses, a cooperative’s board of directors is composed of others who receive services from the cooperative, not of investors who may not even live in the community. That means cooperative consumers – only cooperative consumers – can run for seats on the board. Board elections are held during the cooperative’s annual meeting. At that time, consumers can exercise the principle of “democratic member control” by either voting for board candidates that they feel will best represent their interests or even running for a board position themselves.
 
Democratic member control is your right and responsibility.
 
#3 & #4 - The cooperative difference: economics, independence
There are differences when it comes to receiving electric service. Investor-owned utilities are for-profit, owned by shareholders. Electric cooperatives are not-for-profit and owned by you – the consumer or member.
 
Everyone understands the meaning of running a business and making a profit. What may not be quite as clear is what goes into forming a not-for-profit electric cooperative and sharing the benefits and responsibilities among its consumers, also known as its members.
 
Members’ economic participation
An important aspect of the cooperative is the financial side.
 
Once expenses are paid and some is saved for contingencies, what remains — known as margins — is returned or credited to the consumers. This return is called a capital credit, and the amount consumers receive is proportional to the electricity consumed.
 
Nationally, electric cooperatives return about $600 million annually to member-consumers — money a for-profit business would keep.
 
The board of directors — elected by member-consumers like you — decides the amount and timing of these capital credit distributions.
 
Autonomy, independence
Another “cooperative difference” is autonomy and independence.  Your cooperative is not owned by outsiders. This cooperative is owned by you and other consumers who receive its services, following democratic processes. Especially beneficial is the local control this brings.
 
So, get involved with your local electric cooperative; your voice is powerful. And don’t be afraid to just raise it at the local board meeting, raise it to Congress too. Help us keep electricity safe, reliable, and affordable by speaking out on behalf of your electric cooperative to members of Congress. Your voice and your vote matter. Sign up to be a grassroots advocate and receive alerts about political matters that need your help, today.


How will you get involved in your electric cooperative? Let us know: https://www.surveymonkey.com/r/getinvolvedREMC