The 900 or so electric cooperatives in this country deliver electricity to 42 million Americans in 48 states across 56 percent of the nation’s landmass. In Ohio, the state’s co-ops serve more than 1 million people in 77 of the state’s 88 counties.
But electricity is not co-ops’ only priority. The entire electric co-op movement was born of a desire to improve people’s lives, and since they serve mostly rural and economically challenged counties, the enduring economic benefits they provide their communities is nearly as important.
“Affordable and reliable electricity is a key ingredient for a successful economy,” says Craig Grooms, president and CEO of Ohio’s Electric Cooperatives, the co-ops’ statewide service organization. “Electric co-ops have always been focused on the long-term success of local communities as they keep the lights on and power economic growth.”
According to a report commissioned by the national co-op organization, local electric cooperatives supported about 623,000 American jobs and contributed $111 billion annually to gross domestic product from 2018 through 2022. Their activities have far-reaching impacts across the country — even in areas where co-ops do not serve consumers directly.
The report, Economic Powerhouses: The Economic Impacts of America’s Electric Cooperatives, details the economic benefits of a range of activities conducted by cooperatives. The generation, transmission, and distribution of electricity is the primary economic contribution, but that economic activity also includes capital investments, additional operations and maintenance expenses, and the disbursement of excess operating revenue returned to cooperative members as capital credits.
Many also participate in local and statewide economic development organizations and are able to channel state and federal grants and marketing help to attract businesses to their areas. Many also gather charitable donations from members through bill round-up programs and use that to provide business grants, fund local organizations, and offer scholarships.
“Electric cooperatives foster opportunities of all kinds in their communities,” Grooms says. “Since they are owned and governed by the members they serve, they have a powerful drive to keep improving the quality of life in those communities. It’s just who we are.”
