Operations —
Bottom Line Impact on Communities
In 2003, Iowa’s electric cooperatives added nearly $900 million in output to their local economies, through the increased value of all
goods, services and labor within their service areas because of the cooperatives economic activity. The cooperatives also affected the
jobs of more than 5,392 residents. When it comes to salaries for these jobs, the cooperatives pay very competitive wages and have attractive benefits. Our average salary per worker in 2003 was $33,855.
Dr. Dan Brown, USDA Rural Development State Director, presents a $300,000 check to representatives from Access Energy, Mt. Pleasant and Henry County for a spec building project.
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In Iowa, electric cooperatives deliver power to more than 200,000 homes and businesses or
about 500,000 residents. We serve about 14 percent of the utility market in the state. On
average, $25.72 per member-consumer was returned to our communities through educational,
community, housing and development activities. In addition, the cooperatives provided more than
$56 per resident in community and business investments and nearly $1,200 per resident member in purchases from our local businesses.
Because electric cooperatives are member-owned, money is often returned to those members in the form of patronage. Here is how
patronage works. After the cooperatives pay all bills each year and invest the necessary funds in buildings, infrastructure and other
capital expenditures, the money that remains is the ‘margin.’ In a traditional business, economists call this ‘profit.’ Cooperatives
return this money, as patronage, to their members in proportion to their previous electric service usage. In 2003, the cooperatives in
Iowa returned nearly $11 million to their individual members, or an average of $67.32 to each member, per year.
During 2003, electric cooperatives spent more than $308 million in their communities. In addition, the G&Ts spent another $295 million
in Iowa. For that same period, vendor-related spending (indirect effect) and consumer-related (induced effect) added another $92 million and $82 million respectively. The total impact was $778 million.
In 2003, Iowa’s electric cooperatives paid more than $11.5 million in taxes on utility property. The distribution
cooperatives paid the equivalent of property taxes to their local governments of $3.3 million and the generation and transmission cooperatives paid another $8.2 million.
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Cooperatives distinguish themselves because of these basic principles:
1. Voluntary and Open Membership
2. Democratic Member Control
3. Members' Economic Participation
4. Autonomy and Independence
5. Education, Training & Information
6. Cooperation Among Cooperatives
7. Concern for Community
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Business and economic development. In north central Iowa, an egg processing and production facility expands. 10 new jobs for Iowa. A niche, advanced manufacturing company launches in a community with 5,000
people and moves into a 55,000-square-foot facility. 25 new jobs for Iowa. A spec building is sold to a food processing company that plans $13 million in infrastructure improvements. 200 jobs for Iowa.
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Business and Community Development Programs —
Growing our Communities
A partnership between Touchstone Energy cooperatives and the
Discovery Channel brings to schools a new way to learn about electricity.
Maquoketa Valley REC (pictured) is one participant in the program.
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When you look at cooperative involvement in business and community development programs, it’s easy to see how engrained Iowa’s electric
cooperatives are in their communities. Cooperatives are guided by a set of principles known as the Cooperative Principles. One of those principles is
Commitment to Community. And, as reinforced by the results of our study, it’s one the cooperatives take very seriously.
North West REC receives a USDA loan for the construction of a new hospital in Orange City.
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Electric cooperatives don’t define community by strict geographic boundaries. Instead, we work with
communities of people, with impacting the regions we serve as our primary goal. We know there are many
ways to measure impact and we’ve narrowed it down to the areas we feel have the most potential to shape the
economic future of our state. That’s why you’ll notice our emphasis revolves around traditional business and
economic development efforts and extends into community and civic activities, housing and volunteer activities.
In total, we contributed $10.8 million to these programs, through cash and in-kind contributions. The
contributions not only provided immediate impact, but also laid the groundwork for future growth.
Little Panther Daycare in Panora received a $79,957 grant
from USDA Rural Development. The grant was secured by IADG and
Guthrie County REC.
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It’s not uncommon for the staff and directors of electric cooperatives to hear comments like, "There is a reason why we have
economic development in Iowa’s rural areas — it’s because of the electric cooperatives." We take those comments very seriously,
because we believe they’re true. And, we believe in what these areas of the state offer existing companies and prospective industries. Through involvement in economic development groups,
industrial park development, spec building construction, value-added ag processing, grants and loans, and key accounts activity, we provided nearly $5.5 million in investments in cash, goods and labor contributions.
Students at LaPort Elementary School, served by East-Central Iowa REC, are fascinated with an electrical safety demonstration.
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A community’s vitality takes into account all aspects of its population and also the quality of life it offers. Iowa’s electric cooperatives invested
$884,347 in projects such as job training assistance and professional development training, community recreation, emergency services assistance, day care/elder care assistance and senior assistance.
With the goal of fostering economic development and community betterment throughout Iowa, the Iowa Area Development Group (IADG) has formed a community foundation. The foundation facilitates
economic development research and pilot projects, promotion and marketing, education and training, and community-based and guided philanthropy. It’s one more way the cooperatives are working to attract resources to build stronger families and communities.
In Fredericksburg, Butler County REC and Corn Belt Power Cooperative donated $5,000 to help the Chickasaw
County Country School Preservation Foundation insulate and install climate control equipment in the community’s historic
one-room schoolhouse.
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Electric cooperatives know that youth are our future. That’s why nearly $650,000 was spent in 2003 building awareness among this population sector about energy. At the K-12 level, cooperative staff regularly
take electric safety training into classrooms in Iowa. A partnership between Touchstone Energy cooperatives and the Discovery Channel brings to schools a
new way to learn about electricity. The program provides a direct link to co-ops with materials highlighting the value of electricity. Cooperatives support secondary and post-secondary education by sponsoring dozens of students’
participation in a trip to Washington, D.C., to see government in action. Scholarships and internship opportunities provide a platform to enhance the state’s potential workforce and impact the future of the next generation.
For many rural Iowans, the dream of homeownership is just a dream. We work hard to find solutions to help rural Iowans realize their dreams and improve the quality
of living in our region. It's why Homeward, Inc., a not-for-profit housing organization of rural cooperatives in Iowa, was formed. Through Homeward, cooperatives offer eligible individuals and families several low-interest loan products.
Cooperatives are also active in acquiring Rural Economic Development Loans and Grants (REDLG) for their communities. In 2003, co-ops received $600,000 in REDLG grants for three assisted-living projects.
The total investment for those projects was over $7.5 million and resulted in impacting 633 jobs.
When it comes to measuring economic success, analysts are trained to measure accomplishments by numbers. While we have no reservations asserting our positive figures, it’s the people within our cooperative community who truly make a resonating impact. In 2003, cooperative employees gave
nearly $2 million in time back to their communities. Over 84,000 volunteer hours were spent donating time, talent and experience to areas of need in their communities.
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Community development and civic activities. In western Iowa, a new daycare is established with the help of a $79,957 USDA grant secured by a local cooperative and the Iowa Area Development Group (IADG). 10 jobs,
56 children and families served in Iowa. In southern Iowa, a cooperative employee is honored with the chamber of commerce’s annual Community Service Award. Hundreds of volunteer hours in an Iowa
community. Throughout Iowa, cooperatives partner with television stations to install SchoolNet weather systems in communities. Over 50 units are installed. The program receives national recognition and Iowa students apply the technology to learn about weather.
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Educational development. In north central Iowa, two cooperatives donate money to help insulate and install climate control equipment in the community's historic one-room schoolhouse. Support of Iowa’s educational
heritage. A cooperative installs a wind turbine at a local school. Awareness of the role renewable energy plays in providing power. A central Iowa cooperative provides $10,000 each year to support experiential
learning opportunities for a college’s students to enhance entrepreneurial and economic development opportunities for Iowa businesses. $100,000 over 10 years to keep jobs in Iowa.
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Assisted-living facility. In central Iowa a $200,000 grant is leveraged into a $2.7 million assisted-living facility. 294 jobs impacted in Iowa. Throughout Iowa, 382 loans are made by Homeward, Inc., to assist families with home purchase or rehabilitation. $2.8 million invested in housing projects in Iowa.
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