Cooperatives are member owned and not for profit. Usually cheaper electric rates than investor owned utilities.
Cooperatives are member owned and not for profit. Usually cheaper electric rates than investor owned utilities.
I have never seen a coop with lower rates that the investor-owned utility in my state.
I am just far enough outside the city limits that I am on a coop. My rate for the first 1000 kWh is $0.129. In town, Ameren starts out at about $0.08.
Add to that, I get a “facility charge” of $38 just to be connected. All done my effective rate ends up somewhere around $0.16. The same usage on Ameren (homes 1/2 mile from me are on Ameren) would net to about $0.10.
1) Coops serve mostly rural areas. This means that the number of customers per mile of primary is a fraction of that of investor-owned utilities which mainly serve cities.
2) Coops serve fewer industrial customers which cost less per kWh to serve since the volume is so much higher.
3) While this has been changing lately, coops have historically had to purchase most of the power they sell from major utilities. I haven’t checked lately, but when I first got on a coop in the 80s, their wholesale cost to purchase electricity was just shy of the residential rate of the nearby investor-owned utility.
Maybe other states are better - I’m in Illinois where Com Ed just agreed to pay something like a $200 MM fine for bribing legislators.