News > CEO’s Message – October 2025

CEO’s Message – October 2025

The Cooperative Difference

October is National Cooperative Month, a time to recognize what makes cooperatives unique. Unlike other electric utility providers, cooperatives are focused on people, not profits. This is what we call the Cooperative Difference. Many things set us apart from other utilities. This month, I want to highlight three that I feel are impactful. 

DEMOCRATIC MEMBER CONTROL
Electric cooperatives were built by and are owned by the people they serve. If you receive power from Stearns Electric, you’re not just a customer. You’re a member and owner. 

This ownership gives you a voice in how your Cooperative is run. Every year, you elect our member-led Board of Directors who live and work within our local communities. Our Board ensures business decisions reflect community priorities, not outside interests. 

CAPITAL CREDITS
When you purchase electricity from Stearns Electric, you’re also investing in the Cooperative. 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 track your share of the Cooperative’s ownership until the credits are retired (paid back) in full. Capital Credits represent your ownership of the Cooperative. 

MEMBERS PER MILE OF LINE
Electric cooperatives were first created in the 1930s, when farmers banded together to bring electricity to rural America. According to the National Rural Electric Cooperative Association (NRECA), cooperatives now power 56% of the U.S. landscape. Yet because of their rural roots, co-ops typically serve far fewer consumers per mile of line than other utilities. 

At Stearns Electric, we average 6.72 consumers per mile of line, which is higher than co-ops across both our state and nation. Comparatively, according to NRECA, investor-owned and municipal utilities nationwide average 32.4 consumers per mile of line. 

Because we serve fewer members over greater distances, the cost of building and maintaining poles, wires and equipment is higher per member than it is for utilities in more densely populated areas. Despite this challenge, Stearns Electric works hard to keep rates competitive while still delivering the reliable service our members expect. 

The Cooperative Difference isn’t just about how we operate, it’s about who we serve. At Stearns Electric, we’re proud to be owned by you and work every day for the good of our communities. 

Sincerely,

Matt O’Shea
Chief Executive Officer