|
|
|
The Cooperative Principles In this column two months ago (see below) I wrote about Touchstone Energy, and the Seven Cooperative Principles that are shared by electric cooperatives. This month I would like to go into more detail on the principles, and what they mean to you as a member-owner of Farmers' Electric. The first principle is Voluntary and Open Membership. Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination. The second principle is Democratic Member Control. Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Farmers' Electric's board consists of seven directors that are members of the cooperative. They serve three-year terms and are elected at the Annual Meeting. Members have equal voting rights (one member, one vote). The third principle is Members' Economic Participation. This principle clearly shows the difference between being a member-owner of an electric cooperative, and being a customer of an investor owned utility (IOU) or a municipal system. Members contribute equitably to, and democratically control, the capital of their cooperative. The margins (profits) that the cooperative makes are allocated back to the members based on their usage. These margins are retained for a period of time to provide financial stability and to help finance capital improvement to the system. Each year a portion of the prior years' margins are returned to our member-owners by issuing capital credit checks. Farmers' Electric is currently retiring these capital credits on a first-in, first-out method. The fourth principle is Autonomy and Independence. Farmers' Electric is a non-profit, membership corporation that is chartered under Missouri statutes. Your member-elected Board provides leadership, sets business policies, and approves the operating budgets and rates. As CEO, I am hired by and report to the Board, and I am responsible for the day-to-day operations of the business. Farmers' Electric belongs to several national organizations made up of electric cooperatives, but we are our own business and are not controlled by these outside organizations. Next month I will cover the remaining three cooperative principles. What is Touchstone Energy? In a recent survey of our membership, it was noted that 35% of our members had heard of Touchstone Energy, and 26% knew that Farmers' Electric is a Touchstone Energy cooperative. I was hoping that these numbers would be higher, so I would like to take this time to give a brief explanation of Touchstone Energy, and what it means to Farmers' Electric. So what is Touchstone Energy? It is an alliance of more than 600 cooperatives in 45 states that collectively deliver power and energy solutions to more than 22 million customers. These cooperatives have joined together to create a national "brand". Electric cooperatives operate differently than other utilities, and Touchstone Energy helps us to communicate that message to you. The Touchstone Energy logo allows us to be easily identified by consumers as a utility that has the same set of core beliefs and principles as other Touchstone Energy members. Electric cooperatives are driven by their commitment to the Seven Cooperative Principles. These 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. The next time you see a Touchstone Energy ad on TV or hear a Touchstone Energy ad on the radio, remember that Farmers' Electric is part of that group. You can also visit their website at www.touchstoneenergy.cooperative.com for more information on Touchstone Energy and electric cooperatives across the nation. There is also information on Energy Efficiency programs that will assist you in finding ways to reduce your electrical usage in your house or business. |
|
PRINT
THIS WINDOW
|
