As a cooperative, Associated Electric has an advantage when it comes to keeping owners and members happy.
The two are one and the same.
Members – those families, business owners and industries at the end of their local co-op’s distribution lines – are what we’re all about. Those members drive this three-tiered system of cooperatives.
Technically though, Associated Electric Cooperative has only six owners. Those owners are the six generation and transmission cooperatives (G&Ts) that formed Associated Electric in 1961 to provide an economical, reliable wholesale power supply and support services. The G&Ts continue to own, govern and direct Associated Electric, their wholesale power supply cooperative, today.
Associated Electric is bound by all-requirements contracts to supply all the power supply needs of our six owners. We also sell into the marketplace power not needed by our members to bring in revenue for the benefit of our member-owners.
The six G&Ts each send two directors to Associated Electric’s board of directors, typically the G&T manager and a director from the G&T’s board.
Our 12-member board is informed and involved in setting the direction of Associated Electric, and the board is sized to act quickly to seize opportunities, assess risks and ensure the cooperative is meeting its mission.
It's a grassroots, bottom-up governance that ensures member-consumers are represented.
Our board annually sets Associated Electric’s wholesale power supply rates, balancing members’ need for low-cost, reliable power with Associated Electric’s need to remain financially strong and flexible.
Year after year, the three major bond rating agencies cite our member governance as a strength that makes Associated Electric one of the top-rated wholesale power suppliers in the country.
Associated continues to meet its mission, as illustrated by several benchmarks.
Member distribution cooperatives served by the six G&Ts and Associated continue to buy power at a lower cost than the average paid by nonmember distribution cooperatives in eight states surrounding Missouri. Across the nation, Associated is one of the five lowest-cost G&Ts.
Just as important: Results from a recent survey show cooperative members served by Associated and the three-tiered system rank their cooperatives higher for customer service than other utilities, as well as many other industries, on the American Customer Satisfaction Index.