America s Cooperative Electric Utilities The Nation s Consumer Owned Electric Utility Network
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1 America s Cooperative Electric Utilities The Nation s Consumer Owned Electric Utility Network Electric cooperatives are an integral part of the $391 billion U.S. electric utility industry. They play a critical role in our nation's economy and in local communities. Electric cooperatives are: Private, independent, non-profit electric utility businesses owned by the customers they serve incorporated under the laws of the states in which they operate established to provide at-cost electric service governed by a board of directors elected from the membership which sets policies and procedures that are implemented by the cooperatives management Distribution cooperatives are the foundation of the electric cooperative network. They are the direct point of contact with the member-owners in the delivery of electricity and other services. Generation & Transmission cooperatives (G&Ts) provide wholesale power to distribution co-ops through their own generation or by purchasing power on behalf of the distribution members. In addition to providing high-quality electric service, electric cooperatives are deeply committed to their communities. They empower members to improve the quality of their lives through economic development and revitalization projects, job creation, improvement of water & sewer systems and assistance in delivery of health care and educational services. Facts at a Glance 834 distribution and 63 G&T cooperatives, a total of 897 NRECA co-op members serve an estimated 42 million people in 47 states over 19 million businesses, homes, schools, churches, farms, irrigation systems, and other establishments in 2,500 of 3,141 counties in the U.S. nearly 13 percent of the nation's meters are customers of electric co-ops To perform their mission, electric cooperatives: own assets worth $175 billion (distribution and G&T co-ops combined) own and maintain 2.6 million miles, or 42%, of the nation s electric distribution lines, covering three quarters of the nation's landmass deliver 11 percent of the total kilowatt-hours sold in the U.S. each year generate nearly 5 percent of the total electricity produced in the U.S. each year employ 70,000 people in the U.S. retire over $1 billion in capital credits annually pay over $1.3 billion in state and local taxes Compared with other electric utilities: Co-ops serve an average of 7.4 consumers per mile of line and collect annual revenue of approximately $16,000 per mile of line Investor-owned utilities average 34 customers per mile of line and collect $75,500 per mile Publicly owned utilities, or municipals, average 48 consumers and collect $113,000 per mile NRECA 1 of 5 February 2017
2 Statewide Associations In 38 of the 47 states in which electric cooperatives operate, statewide associations provide a unified voice that speaks to the general public, regulatory bodies and state legislatures on behalf of their members. These associations are voluntarily supported, governed by representatives of the member cooperatives and offer commonly desired services. Thirty-two statewide associations publish newspapers or magazines for the co-op consumer-owners, reaching more than eight million readers each month. National Representation The National Rural Electric Cooperative Association (NRECA) represents the national interests of cooperative electric utilities. NRECA provides legislative, legal and regulatory representation; medical insurance and financial services; education and training programs; business consulting; a weekly newspaper and a monthly magazine. NRECA and its member cooperatives also support energy and environmental research and administer a program of technical advice and assistance in developing countries around the world. NRECA Chief Executive Officer Jim Matheson is chief executive officer of the National Rural Electric Cooperative Association (NRECA), the national service organization that represents the nation s more than 900 private, notfor-profit, consumer-owned electric cooperatives, which provide service to 42 million people in 47 states. Jim joined NRECA in July 2016 following distinguished careers in both the public and private sectors Prior to joining NRECA, Jim served as principal, public policy practice for the international law firm Squire Patton Boggs based in Washington, D.C. From 2001 to 2015, Jim was elected to serve as a U.S. Representative from Utah for seven terms. During his tenure on Capitol Hill, Jim was known as a legislator who was able to work with colleagues on both sides of the aisle. He was chief deputy whip for the House Democratic Caucus and served as co-chairman of the Blue Dog Coalition. Jim also was a member of the House Energy and Commerce Committee, as well as the Financial Services, Transportation and Infrastructure, and Science Committees. Prior to entering government service, Jim worked in the energy industry for several years. Jim was born and raised in Salt Lake City, Utah. He received a Bachelor s Degree in Government from Harvard University and an MBA in Finance and Accounting from UCLA. Jim s wife, Amy, is a pediatrician, and they have two sons, William and Harris. NRECA 2 of 5 February 2017
3 Media & Public Relations Contacts Tracy Warren Media and Public Relations Representative 703/ Stephen Bell Director Media & PR 703/ NRECA Headquarters: 703/ Wilson Blvd CM Arlington, VA NRECA web site: NRECA 3 of 5 February 2017
4 Electric Utility Comparisons (2015 EIA data or latest) Total Revenue (billions)... $ $60... $44... $389 Number of Organizations , ,100 Number of Total Customers m m m m Size (median number of customers) , , ,000 General Market Share: Percent of total... 73%... 16%... 12% Sales (billion kilowatt hours)* Residential ,404 Commercial... 1, ,354 Industrial Total... 2, ,704 *Federal sales are not shown Miles of Distribution Line... 50%... 7%... 42% % Customers per mile of line (density) Revenue per mile of line... $75, $113, $16,000 Distribution plant per Customer... $2, $2,740*... $3,290 Assets (billions)... $1, $295*... $ $1,531* Equity (billions)... $ $93*... $58... $487* Equity%... 32%... 32%*... 33% *Publicly Owned data is not available; these are estimates based on past growth NRECA 4 of 5 February 2017
5 Source Notes: Energy Information Administration (EIA) Electric Sales, Revenue, and Price 2014 or latest. The statement in the opening paragraph of this Fact Sheet Electric cooperatives are an integral part of the $391 billion U.S. electric utility industry comes from the Electric Power Annual Table 1.1. Total Electric Power Industry Summary Statistics, 2015 and 2014); Sales, Revenue, and Average Price of Electricity to Ultimate Customers or the Electric Power Monthly Table 5.2. Revenue from Sales of Electricity to Ultimate Customers: Industry revenue, sales and customer data is from EIA Form data. Investor-owned statistics includes IOU affiliates engaged in competitive retail markets; sales from federally owned utilities not shown NRECA has 834 electric distribution system members and 63 G&T (Generation & Transmission) systems; the distribution members include a small number of rural public power districts and mutual utilities. Density and distribution plant per customer data for IOU and Public Sector is Co-op financial data is from the 2015 RUS Form 7 (and CFC Form 7, if available). EIA: Energy Information Administration (a part of DOE), Washington, DC. RUS: Rural Utilities Service (a part of USDA), Washington, DC. CFC: Cooperative Finance Corporation, Herndon, VA. Posted to cooperative.com: NRECA 5 of 5 February 2017
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