The Cooperative Difference

Carroll EMC is an electric cooperative (or co-op), a utility owned by every customer who uses its services. That’s why Carroll EMC and other cooperatives refer to their consumers as Members.

What is a cooperative?

The dictionary defines “cooperative” as “working or acting together willingly for a common purpose of benefit.” This is what the founding Members of Carroll EMC did as they worked together to bring electricity to western Georgia in 1936.

Who are the cooperative Members?

Once a consumer pays the $15 Carroll EMC membership fee, they become a Member and part owner of the cooperative. Every Member-owner has a voice in how the cooperative is operated and influences this process through voting at the annual meeting. Because the Members of the cooperative are also the owners, Carroll EMC is a locally owned and operated business.

How is Carroll EMC different from other power companies?

Many large utilities are owned and controlled by stockholders, private investors who may or may not live in the same state or even country as the company. Carroll EMC, like other electric cooperatives, is owned and controlled exclusively by local consumers. Being customer-owned is at the heart of The Cooperative Principles that define Carroll EMC’s identity.

How is the co-op governed?

Carroll EMC is democratically controlled by its Members. It is governed by a nine-member board of directors elected from among the membership. All Members are asked to participate in the co-op’s annual meeting, held each October, at which board members are elected.

How does the cooperative operate?

Carroll EMC operates on a not-for-profit basis. Excess margins are returned to Members either in the form of capital credits or in stable rates and infrastructure.

What are capital credits?

Capital credits are unique to cooperatives like Carroll EMC. Private power companies make profits and pay dividends to stockholders. Cooperatives, on the other hand, work on a not-for-profit basis and allocate to members any margins, or income remaining after all of the cooperative’s bills have been paid and all expenses considered. “Capital credits” is the term used for the allocation of each Member’s share of the margins.

What are the seven cooperative principles?

Cooperatives around the world operate according to the same set of core principles and values, adopted by the Internation Co-operative Alliance. These principles are a key reason why America’s electric cooperatives operate differently from other electric utilities, putting the needs of our Members first.

1. Voluntary and Open Membership: Membership in a cooperative is open to all people who can reasonably use its services and stand willing to accept the responsibilities of membership, regardless of race, religion, gender or economic circumstances.

2. Democratic Member Control: Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Representatives (directors/trustees) are elected among members and are accountable to them. In primary cooperatives, members have equal voting rights (one member, one vote); cooperatives at other levels are organized in a democratic manner.

3. Members Economic Participation: Members contribute equitably to, and democratically control, the capital of the cooperative. At least part of that capital remains the common property of the cooperative. Members allocate surpluses for any or all of the following purposes: developing the cooperative; setting up reserves; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.

4. Autonomy and Independence: Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control as well as their unique identity.

5. Education, Training and Information: Education and training for members, elected representatives (directors/trustees), CEOs and employees help them effectively contribute to the development of their cooperatives. Communications about the nature and benefits of cooperatives, particularly with the general public and opinion leaders, help boost cooperative understanding.

6. Cooperation Among Cooperatives: By working together through local, national, regional and international structures, cooperatives improve services, bolster local economies and deal more effectively with social and community needs.

7. Concern for Community: Cooperatives work for the sustainable development of their communities through policies supported by the membership.