Energy Utility Basics:
The Cooperative Model
October 1, 2012
Nathan Franklin
Government Relations
Dairyland Power Cooperative
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1930 - 11% of farms had electricity
Depression limited development options
Growing population demanded better rural
economy
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1935 Executive Order created the Rural
Electrification Administration
Congress formalized in 1936
Local cooperatives built system
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First system in Wisconsin was Richland
Electric in 1937
By 1945, today's network of 24 Wisconsin
cooperatives in place
520,000 residents served
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930 cooperatives in 47 states
42 million people, 11% of the population
10% of kilowatt hours
43% of all power lines in country
Rural Utilities Service (RUS) available funding
Cooperative Model
• Owned & controlled by consumers
• Governed by board of directors; elected
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at annual meeting
One member; one vote
Not for profit
Revenues over budget called "margins"
are returned to customers
Cooperative Principles
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Voluntary and open membership
Democratic member control
Members' economic participation
Autonomy and independence
Education, training, and information
Cooperation among cooperatives
Concern for community
Organization of the Industry
• 864 distribution cooperatives associated
w/ G&Ts
• Some buy from other sources (TVA, IOUs,
etc.)
• 66 Generation and transmission
cooperatives (G&Ts)
Touchstone
Energy
Branding
Wisconsin
• Six cooperatives purchase from
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other sources
• Mainly Alliant
18 are members of Dairyland Power
Cooperative
• Wisconsin’s only cooperative G&T
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Dairyland headquartered in La Crosse
Generating facilities in Alma, Genoa, Ladysmith, Elk
Mound, and Eau Claire, Wisconsin and Adams,
Minnesota
Serve 253,000 meters/600,000 people in four states
Renewables on the Dairyland System
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Wind (Iowa and Minnesota)
Landfill gas (Iowa and Wisconsin)
Manure digesters (Wisconsin)
Hydroelectric (Wisconsin)
Biomass (Wisconsin)
44 MW
15 MW
4 MW
24 MW
40 MW
Renewables on the Dairyland System (cont.)
• ~300 installations in DPC territory
• 200+ in Wisconsin (over half of state total)
• Solar installations on the rise
• Up 1000% since 2006
• 60/70 installs in 2011
MN
WI
IA
IL
Dairyland Power
Cooperative
Service Territory
Our Mission…
"To provide competitively priced energy
and services to our customers and
maximum value to our owners, consistent
with the wise use of resources. We will
work with our members to improve the
quality of life of their customers and the
economic and social well-being of the
region."
www.dairynet.com
Challenges Facing the Industry
• EPA rules, e.g. coal ash designation
• One size fits all environmental upgrades
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to existing plants
Cost of fuel & transportation
New renewable facilities in face of energy
surplus
New transmission facilities for growth,
renewables