Associated Electric Coop, Inc

Associated Electric Cooperative Inc. is owned by and provides wholesale power to six regional and 51 local electric cooperative systems in Missouri, northeast Oklahoma and southeast Iowa that serve more than 875,000 customers. AECI is a cooperative guided by the seven cooperative principles that reflect the best interests of members: voluntary and open membership; education, training and information; democratic member control; cooperation among cooperatives; members' economic participation; concern for community; autonomy and independence.

Members – those families, business owners and industries at the end of their local co-op’s distribution lines – are what we’re all about. Those members drive this three-tiered system of cooperatives.

Technically though, Associated Electric Cooperative has only six owners. Those owners are the six generation and transmission cooperatives (G&Ts) that formed Associated Electric in 1961 to provide an economical, reliable wholesale power supply and support services. The G&Ts continue to own, govern and direct Associated Electric, their wholesale power supply cooperative, today.

Associated Electric is bound by all-requirements contracts to supply all the power supply needs of our six owners. We also sell into the marketplace power not needed by our members to bring in revenue for the benefit of our member-owners.

The six G&Ts each send two directors to Associated Electric’s board of directors, typically the G&T manager and a director from the G&T’s board.

Our 12-member board is informed and involved in setting the direction of Associated Electric, and the board is sized to act quickly to seize opportunities, assess risks and ensure the cooperative is meeting its mission.

It's a grass-roots, bottom-up governance that ensures member-consumers are represented.

Our board annually sets Associated Electric’s wholesale power supply rates, balancing members’ need for low-cost, reliable power with Associated Electric’s need to remain financially strong and flexible.

Year after year, the three major bond rating agencies cite our member governance as a strength that makes Associated Electric one of the top-rated wholesale power suppliers in the country.

Associated continues to meet its mission, as illustrated by several benchmarks.

Member distribution cooperatives served by the six G&Ts and Associated continue to buy power at a lower cost than the average paid by nonmember distribution cooperatives in eight states surrounding Missouri. Across the nation, Associated is one of the 10 lowest-cost G&Ts.

Just as important: Results from a recent survey show cooperative members served by Associated and the three-tiered system rank their cooperatives higher for customer service than other utilities, as well as many other industries, on the American Customer Satisfaction Index.

Our owners and members are one and the same.

Our member-owners are a key strength for Associated Electric and are the foundation of our business strategy. One of the most important ways members are involved in our electric cooperative system is through member governance.

Adherence to the seven cooperative principles is what makes cooperatives different, especially the cooperative principle of one member, one vote.

History

Since its formation in 1961 by six generation and transmission cooperatives, Associated Electric Cooperative has grown under the leadership of its member-directed board and management. Today, Associated Electric has a strong financial position, diverse power supply, integrated transmission system and is positioned as one of the lowest-cost generation and transmission cooperatives in the nation.

Throughout the years of change and challenge, however, Associated Electric has never lost focus of the reason it was formed: to provide an economical and reliable power supply and support services to its members. 

The mix matters ... for members, that is

We use a mix of generating resources and technologies to make sure we can deliver electricity at the lowest cost possible to our member transmission cooperatives. Associated Electric Cooperative uses the lowest-cost resources and power plants first -- typically hydropower when it’s available, then coal, natural gas and wind.

Once member load is served, we may have opportunities to sell electricity to other utilities, and that revenue helps offset costs that members would otherwise pay.

Planning assures reliable power supply

Associated has built a diverse mix of resources, including energy efficiency, as part of its steadfast focus on its core business balanced with environmental stewardship.

As pressure mounts against coal plants, Associated Electric continues to keep its options open for meeting members’ future electricity needs. To satisfy growth in electricity demand, we must look at all cost-effective generation resources available. In addition, we will continue to implement energy efficiency and equipment-rebate programs.