The Bedrock of Cooperatives
As our name says, Coosa Valley Electric Cooperative (CVEC) is an electric cooperative, which means it is owned and governed by its members. Along with other cooperatives around the world, CVEC operates based on a set of 7 core principles established by the International Cooperative Alliance (ICA).
First and foremost of these principles is open and voluntary membership. This principle ensures cooperatives remain inclusive, democratic, and accessible to all who meet the membership criteria. This distinguishes us from other business models and reinforces our commitment to equality, participation, and shared benefit.
Cooperatives do not discriminate based on gender, social status, race, political beliefs, or religious affiliation. Everyone has an equal opportunity to participate in and benefit from the cooperative’s activities. Additionally, individuals may join and leave at their discretion without coercion or undue restrictions.
This principle underscores our emphasis on democratic control and member-driven decision-making. Unlike traditional corporations, where ownership is often limited to investors with financial stakes, cooperatives prioritize participation over profit, allowing members to have a direct say in governance and operations.
Cooperatives thrive on the diversity of their members. Our open-door policy fosters inclusivity and ensures everyone, regardless of background, can contribute to and benefit from the collective success. This creates a more equitable economic system where power and resources are distributed more fairly among members.
Cooperative members enjoy equal voting rights, usually following the principle of “1 member, 1 vote.” This structure promotes democratic participation, ensuring that decisions reflect the collective interests of all members rather than the financial interests of a few stakeholders.
Cooperatives are often deeply embedded in their local communities. Open membership policies encourage community involvement, collaboration, and mutual support. This connection strengthens both economic and social bonds and helps cooperatives contribute to resilient local economies.
Since cooperatives are not driven by external investors seeking profits, their growth and sustainability depend on attracting and retaining committed members. For electric cooperatives specifically, our growth and sustainability truly benefit from open membership because it helps ensure we have a consumer base from diverse backgrounds. This means we are most often not tied to the success of 1 or 2 industries or segments of the economy.
While open and voluntary membership is a powerful principle, we must also balance inclusivity with the need for responsible membership criteria. For electric cooperatives, our biggest requirement is the ability to pay for the service and the electricity our members use. While our only means for determining this eligibility beforehand is a credit check, a member’s ability to pay his/ her power bill is what ensures their continued membership over time.
Open and voluntary membership is the foundation of any cooperative. It fosters inclusivity, diversity, democracy, and sustainability. By welcoming all individuals, cooperatives create opportunities for empowerment and collective success. As we continue to evolve, our commitment to this principle will help ensure our role as a force for economic and social progress worldwide.