10/1/2014

How do electric co-ops benefit our state? Let’s count the ways

   What if the investments and jobs made possible by Mississippi’s 26 electric power associations were removed from the state’s economy? How would that impact Mississippi?
   That is what we asked the University Research Center of the Mississippi Institutions of Higher Learning. They crunched the economic data we supplied last year and came to these conclusions:

• On average, our total employment of 2,936 workers directly and indirectly caused another 4,361 workers throughout the state to be employed.
• The value of goods and services purchased by electric power associations is estimated to be more than $3.5 billion.
• Members of electric power associations in the state contribute an estimated 7,300 jobs to Mississippi’s economy, $2.1 billion in demand for goods and services, and $1.7 billion in gross domestic product.
• Electric power associations create about 0.6 percent of Mississippi’s private non-farm employment, 1.43 percent of the state’s gross domestic product and contribute 0.46 percent of its disposable income.

   Electric power associations are powerful economic drivers, not only because we provide affordable, reliable electric service to residential, commerical and industrial members, but also because of our long tradition as important local employers.
   Since the 1930s, electric cooperatives have provided good jobs in small towns, where stable employment is never taken for granted. The typical electric co-op will employ people to run its business office, build and maintain the electrical system, assist members, keep the bucket trucks running, manage a warehouse, buy supplies and perform countless other daily tasks.
   We also hire contractors for various jobs, from meter reading and right-of-way maintenance to engineering and data processing.
   The revenue we receive from power bills— beyond that used to purchase wholesale electricity— churns throughout the local economy, fueling the creation of more jobs, as the research indicates.
   One place the revenue does not go is into investors’ pockets. Electric power associations are not-for-profit cooperatives; we are owned by the people we serve, not investors. You can’t buy stock in your local electric power association, but you can become a memberowner by applying for electric service.
   October is National Co-op Month, when cooperatives of all kinds are celebrated and their benefits highlighted. If you are a new member of an electric power association, I encourage you to take time to learn just what cooperative membership means. I think you will be impressed.
   Electric cooperatives grew out of a true grassroots movement in the 1930s, when most of America’s farmers were still living a hardscrabble 19th century lifestyle. Determined to liberate their families from a life of hard manual labor, farmers formed local electric cooperatives to obtain affordable service.
   Your electric power association exists today to provide that service, make significant contributions to community development and help power Mississippi’s future growth. That’s worth celebrating.

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