What is a cooperative?

Rural electric cooperatives were initially formed when the commercial, investor-owned power companies refused to serve the vast area of rural America because it was sparsely populated, thus not profitable. The Rural Utilities Service (RUS) was created by the U.S. government to loan money to groups of people who were banding together to build electric lines into rural America. Thus were born rural electric cooperatives such as South Alabama Electric. Co-ops are private enterprises owned and operated by the people they serve. The members elect a Board of Trustees who make the policies of the co-op. The Board employs a manager who in turn hires a staff of employees to carry out the policies and operate and maintain the co-op's lines and equipment. The bylaws constitute an agreement between the membership and the cooperative. Upon signing an application for membership and electric service, you the member, agree to be bound by the provisions of the bylaws and rules and regulations of the cooperative as adopted by the Board of Trustees. Membership requires a low $5 connection charge.