News > CEO’s Message – October 2023

CEO’s Message – October 2023

October is National Co-op Month

Electric cooperatives, such as Stearns Electric Association, are unique from electric utility providers in multiple ways. One way is in our adherence to the seven cooperative principles: 

• Voluntary and Open Membership
• Democratic Member Control
• Members’ Economic Participation
• Autonomy and Independence
• Education, Training and Information
• Cooperation Among Cooperatives
• Concern for Community

Since October is National Co-op Month, I wanted to take some time to explore some of these principles and how they apply to key projects we are currently working on. 

DEMOCRATIC MEMBER CONTROL
Stearns Electric was founded by local farmers in 1937, with the help of the Rural Electrification Administration, to bring electricity to rural areas of Central Minnesota. By the members, for the members – that is how we still operate today. 

If you receive electric service from Stearns Electric, you are a part-owner of the Cooperative, not just a consumer of electricity. As it was 86 years ago, our owners (you) still oversee the business of Stearns Electric. Our member-elected Board of Directors is made up of one member representing each of our nine districts. These Directors are nominated and elected by you and oversee that all operations of the Cooperative benefit you, our member-owners. 

We recently hosted our 2023 Board and Brews events, which was a direct request from our member-owners. Attending Board and Brews, serving on our Member Engagement Group, attending the Annual Meeting or running for Director are all ways you can be involved in helping set the strategic direction of Stearns Electric Association. 

MEMBERS’ ECONOMIC PARTICIPATION
One of the easiest ways to see the cooperative difference in action is through Capital Credits. 

As a member-consumer, you invest in Stearns Electric through your energy purchases. Each year, any margin (revenue after expenses) earned by Stearns Electric is reinvested in the Cooperative. At the same time, our margin is proportionally allocated, based on electric purchases during the year, and recorded to Capital Credit accounts for each of our members. These accounts are maintained until the credits are retired (paid) in full. Capital Credits represent members’ ownership of the Cooperative. 

At the September Board meeting, your Board members voted on Capital Credit distributions for 2023. More information will be shared in next month’s issue of Power Connection. 

COOPERATION AMONG COOPERATIVES
We frequently work with other electric utility cooperatives from across the state and country to share resources, provide mutual aid in emergencies and support each other. One real-time example of this is our current work on property tax valuation (please see my September column for more information.)

We recently joined several other Minnesota electric cooperatives and signed a Letter of Engagement with Felhaber Larson law firm to represent us in our property tax valuation disagreement. Together, we hope to amplify our cooperative voices in this ongoing issue.

Take some time in October to celebrate National Co-op Month by supporting local cooperatives in all industries and know that at Stearns Electric, we will continue to work on behalf of all member-owners like you. 

Sincerely,

Matt O’Shea
Chief Executive Officer