Image
PROMO Miscellaneous - Open Mail Box Letters - iStock

Letter to the Editor - Get involved in your electric cooperative

iStock

To the Editor

What is an electric cooperative? It is a not for profit company “owned” by the members that it serves. The electric coop is charged with providing safe, reliable and affordable electricity to its member owners. From the electric revenues that it receives, the coop is then required to pay all expenses incurred by the coop to service its members together with investing in new and upgrading existing infrastructure. After the expenses are covered and capital investments are completed, any excess revenues are then returned to the member/owner in the form of patronage capital. 

Cooperatives are governed by a Board of Directors, whom are elected by the owners. An aspiringDirector campaigns for the open position and members either vote to keep the current Director or elect a new Director.

The compensation of a Director is set by the Board themselves and can range from nominal to extravagant. Whether their compensation is nominal or highly compensated, their job should be taken with dedication, common sense and with ability to listen to the members. 

Some cooperatives have created internet subsidiaries in which to provide internet to the rural communities within their service area. With that said, some of those cooperatives have done exceedingly well in providing quality internet to their members. However, some of those cooperatives have become, for a better word, greedy. They have forgotten their members and have made substantial investments in internet companies and infrastructure outside of their service areas. The infrastructure of that subsidiary has become sub-standard pushing customers to seek internet access elsewhere. Customers become angry because their internet continues to buffer, or continues to drop. 

At some cooperatives, Board of Directors have not only forgotten the employees, but also their original mission statement of providing internet to their service members. They have become so complacent; they collect their stipend and turn a blind eye to the operations of the subsidiary. The work environment becomes “toxic”, employees begin to leave: Hardworking employees who have strived to provide quality internet to their customers and cooperative members, only to become one of the many that have left willingly or have been wrongfully forced to resign. 

At one such cooperative, these occurrences are the norm. Employees contacted their Board of Directors to voice their deep concerns over the atrocious mis-managed decisions that affected both the parent company and the subsidiary, and they were ignored. Many, who contacted Directors were threatened with their jobs; why? Do they not think there is a serious issue when multiple employees, outside members and even upper management are contacting the Board to voice their concerns over the operational decisions that are being made? 

If the Directors fail to listen to the employees, why would it be any different for a member? Is this the kind of Board that you want to continue to represent you? Need I remind you; YOU are paying their stipend: The Board Member, elected by you the member owner, is responsible for directing on your behalf. Being a member of the cooperative, I want my director to represent me, and what is best for the company, not their self-interests, and certainly not the CEO.

I urge you, as a member of a cooperative, to take your ownership seriously. Be an active part of the cooperative: attend annual meetings, attend board meetings, and above all…. question, question, question! It is your duty, as a member/owner to hold your board of directors accountable. If you are not satisfied with their job; run for a position in your district. It is my opinion; a Director’s position should have term limits anyway. Long term Directors become too complacent, too lax in their decision making, and fall completely under the spell of the CEO, who turns out to be a narcissistic politician rather than the thoroughbred they thought they hired.

Penny Globoker

Ordway, CO