The Cooperative Difference
Posted on Jul 02, 2015 at 12:00 AM
In addition to supplying affordable, reliable electric service, Tri-County EMC makes a huge impact in the local communities it serves. While cooperatives provide electricity just as any other utility would, there are some differences.
Cooperatives have member-owners, not customers: Yes, members pay for their electricity as customers at an investor-owned utility would. But unlike investor owned utilities where decisions are made by stockholders, electric cooperatives are owned by the members they serve. Members have a right to participate in the decisions of the cooperative and the election of board members through the annual meeting and election process. (42213002)
Cooperatives focus on providing a service, not making a profit: Cooperatives are not-for-profit corporations. The money they collect above what is needed to provide electric service is returned to members in the form of capital credits, similar to stock dividends. If a member’s bill is one percent of the coop’s total revenue, their portion of capital credits is one percent of the coop’s margins.
Cooperatives Do Pay Taxes: Because cooperatives do not make a profit, they do not pay income taxes. They do, however, pay property taxes, ad valorem and sales taxes each year. In fact, in 2014 Tri-County EMC paid $614,585 in property taxes and $37,116 in ad valorem taxes and $1,220,673 in sales taxes from utility bills — a total of $1,872,374.
Cooperatives Give Back To the Community: In 2014, the Tri-County EMC Foundation donated $48,191 to non-profit organizations in the Tri-County service area through Operation Roundup grants. Tri-County also gives away $10,000 in scholarships annually, along with $30,000 in Bright Ideas grants to benefit local teachers.
In addition to financial support in the community, Tri-County also sponsors community members in educational and leadership programs including the Washington Youth Tour, the Cooperative Youth Leadership Camp, the EMC/FFA Rural Electrification Contest and the Cooperative Couples’ Conference.
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