The mission of N.W. Electric Power Cooperative, Inc. is to provide dependable, high-quality, wholesale power to meet all present and future requirements of its members and to furnish strong leadership for marketing, community, and economic development and other services; all consistent with the highest ideals of cooperative enterprise and sound business practices.
ELECTRIC COOPERATIVES ARE
Electric Cooperatives Are:
- Private, independent, non-profit electric utilities
- 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 co-op’s management
Distribution cooperatives are the foundation of the rural electric network. They deliver electricity to retail customers. 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 electric service, electric co-ops are deeply involved in their communities promoting development and revitalization projects, small businesses, job creation, improvement of water and sewer systems and assistance in delivery of health care and educational services.
THE THREE-TIERED SYSTEM
The three-tiered system
The three-tiered system, united by the common purpose of serving electric cooperative members with affordable and reliable electricity, brings efficiency through specialization at each "tier." The entire three-tiered system benefits from the economy of scale and, since each tier can react quickly to changes, the overall competitiveness of the system is improved.
The top tier is comprised of 51 distribution cooperatives in Missouri, southern Iowa and northeast Oklahoma. These distribution cooperatives provide electric service directly to member-consumers, including businesses, farms and households.
Distribution cooperatives take on many different responsibilities, including installation and maintenance of power lines from substations to consumers, planning for future needs of their service areas, working with communities to encourage economic development, helping their members use electricity efficiently, incorporating consumer technology and educating about safety.
At the second tier are the regional cooperatives that transmit the power from Associated Electric Cooperative to the 51 distribution cooperatives. These organizations are known as generation and transmission cooperatives (G&Ts), and they serve six geographical areas of Missouri, southern Iowa and northeast Oklahoma.
The G&Ts operate, build and maintain the high-voltage transmission system that has been built with member investment. Additional strengths the G&Ts bring to Associated that ensure its success include member governance that keeps it focused on its mission; legislative, government, industry and community relations; interconnections and relationships with neighboring utilities; and, in some cases, additional low-cost generation to its resources.
In 1961 the six G&Ts formed the system's third tier, Associated Electric Cooperative, which was subsequently given responsibilities for generation and power procurement, leaving transmission as the primary responsibility of Associated Electric's six owner G&Ts.
COOPERATIVE PRINCIPLES
Voluntary and Open Membership
Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
Democratic Member Control
Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. The elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner.
Members’ Economic Participation
Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
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 by their members and maintain their cooperative autonomy.
Education, Training, and Information
Cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperatives. They inform the general public, particularly young people and opinion leaders, about the nature and benefits of cooperation.
Cooperation Among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
Concern for Community
While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.
Member