November 27, 2024

Value Of The Cooperative Business Model

PVREA News
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We’re built a little differently than other types of electric providers. There’s value in being part of an electric cooperative instead of a municipality or investor-owned utility. Let’s explore why we’re proud to be different.

The Rise of Rural Electrification

Before electric co-ops, many rural areas lacked access to essential electricity, hindering economic development and the quality of life. Private for-profit power companies deemed it too expensive to run lines outside of town. Wanting a better life, these underserved rural citizens banded together to form the first electric cooperatives and built a power distribution system that served their needs.

But they would need funding for materials and supplies. Franklin D. Roosevelt established the Rural Electrification Administration in 1935 to provide loans to these newly established farmer-based cooperatives. By the 1950s, over 90% of US farms had access to electricity, proving the success of the cooperative business model and the enduring spirit of these early pioneers.

The day the lights came on symbolized a step toward progress, modernization, and improved living standards. It also symbolized a shift in how a business could successfully meet the needs of people who rely on them, and how that business can be a beacon of empowerment.

Cooperatives Serve Communities, Not Customers

Cooperatives were built by and for local people. We know our unique needs, we work and live right here, and the community elects the people making decisions, not private owners, out-of-state investors, or other shareholders.

Co-ops are member-focused. You’re not just a customer of Poudre Valley REA, you’re a member with a vote and a voice.

We’re not-for-profit. Cooperatives do not exist to make a profit for shareholders. Instead, we exist to serve you and add value to your life.

We work together to own and operate shared generation and distribution resources, enabling us to pool resources and expertise to deliver safe, affordable, reliable power alongside services that enhance your life.

Co-op transparency and communication allow a cooperative to answer honestly to the people we serve. We encourage our members to engage with us in person, over the phone, or online.

Cooperatives are all about people helping people, uplifting and empowering our communities together in a lifelong pursuit of a brighter future.

Your Cooperative Membership Perks

Exceptional Member Service: At your cooperative, we focus on providing you with exceptional member service. Whether you do business with us in person, over the phone, or online – you should expect the same great level of care, respect, and attention.

You Have a Voice: As a member of an electric cooperative, you have a say in how your co-op operates. Come to our Annual Meeting to hear updates and engage with us. Vote in the Board of Director elections. Join our networks like Cooperative Voices for those interested in governmental affairs. And provide feedback about our programs and services so we can enhance our product offerings to meet the diverse needs of our membership.

Returned Margins: Paying out member credits demonstrates our not-for-profit business model while adding value to your life. Since our founding, we’ve returned tens of millions of dollars back to our membership through member credits. Learn more about retiring and allocating member credits.

Your Trusted Source of Information: To help navigate your many energy-related options, turn to your local energy experts. We’re here to help make sense of energy management options and solutions. However you choose to do business with us — in person, over the phone, or online — speak with the specialists who have your best interest at hear. Contact us today!

A Home for Residential Members: To help you navigate your many co-op membership benefits, we’ve created a home for our Residential Members. View all our residential products and services as they relate to you.

Empowering Your Business: To help optimize performance, we’ve created a home for our Business Members to access all our business products and services so you can maximize your many co-op membership benefits.

7 Cooperative Principles

Every cooperative operates according to the same seven principles. These have been our guide since our founding in 1939 and will keep us true to our mission and values for the years ahead.

  1. Voluntary & Open Membership: Membership in PVREA is open to all people who can reasonably use our 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) are elected among members and are accountable to them. In primary cooperatives, members have equal voting rights (one member = one vote).
  3. Members’ Economic Participation: Members contribute equitable to, and democratically control, the capital of our cooperative. At least part of that capital remains the common property of our co-op. Members allocate surpluses for any or all of the following purposes: developing the co-op; setting up reserves; benefiting members in proportion to their transactions with the co-op; and supporting other activities approved by our membership.
  4. Autonomy and Independence: Cooperatives are autonomous, self-help organizations controlled by their members. If we enter into agreements with other organizations, including governments, or raise capital from external sources, we do so on terms that ensure democratic control as well as our own unique identity.
  5. Education, Training & Information: Education and training for members, elected representatives (directors), CEOs and employees help them effectively contribute to the development of our cooperative. Communications about the nature and benefits of co-ops, particularly with the public and opinion leaders, help boost cooperative understanding.
  6. Cooperation Among Cooperatives: By working together through local, regional, national and international structures, cooperatives improve services, bolster local economies, and deal more effectively with the needs of our communities.
  7. Concern for Community: Our cooperative works for the sustainable development of our communities through policies supported by the membership.

The Value Of Membership In PVREA

Poudre Valley REA provides the lowest residential electric rate in Colorado.

Between 2017 and 2025, the price you pay for electricity will have only increased by about 2%. That level of stability is rare, especially over an eight-year span.

According to the Institute of Electrical and Electronics Engineer’s benchmark study results, Poudre Valley REA ranks nationally in the top quartile for dependable service.

We were recognized as having one of the top five highest satisfaction scores among Touchstone Energy ® Cooperatives *.

* These results came from our members who answered surveys and reported high levels of satisfaction with the service they received.

Learn more about the value of membership in Poudre Valley REA.

Value Beyond The Electric Meter

Poudre Valley REA is proud to not only offer stable, affordable rates and dependable power with exceptional customer service. We also provide programs and services that add value to the lives of our members.

Programs include rebates, rewards, demand response, self-generation and interconnection, renewable resources, and energy management.

Services include access to local energy experts, on-demand energy use data, rate selection, a variety of bill pay options, energy audits, energy efficiency resources, and more.

Our community support services include free electrical safety demonstrations, continuing education scholarships, youth trips, educational grants, event sponsorship, volunteer opportunities, and more.

Learn more about the value of Poudre Valley REA membership beyond the electric meter.

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