Cooperative Principles

1) Voluntary and open membership
Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
2) Democratic member control
Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights – one member, one vote – and cooperatives at other levels are organized in a democratic manner.
3) Members’ economic participation
Members contribute equally to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. They usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
4) Autonomy and independence
Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
5) Education, training and information
Cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of cooperation.
6) Cooperation among cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
7) Concern for community
While focusing on member needs, cooperatives should work for the sustainable development of their communities through policies accepted by their members.

A cooperative is a business that belongs to, and is controlled by, the people who use its services. It can be defined as a democratic association of persons organized to provide themselves a service under a plan that eliminates entrepreneur profit. A cooperative is voluntarily owned and controlled by its members and operated for them and by them on a non-profit or cost basis.

Why Cooperatives?
There is a profit in providing electricity to cities and towns. Since many residents live close together, the cost of materials can be divided between several people.

In rural areas, that is not the case. With several miles of line between residents, typical businesses had no interest in serving these areas. That's understandable...there wasn't a profit in it. It would cost too much to build lines and maintain them with customers so few and far between. How, then, would farmers get electricity?

Cooperatives are not focused on making a profit but simply providing a service for a group of members. They are private, independent electric utilities, owned by the members they serve. Electric cooperatives began to spread across rural America after President Franklin D. Roosevelt created the Rural Electrification Administration (REA) in 1935. The Executive Order establishing the REA and the passage of the REA Act a year later provided loans for rural electrification.

Electric cooperatives are different than other forms of business, and member-owners of cooperatives notice this difference. For one thing, co-ops put consumers first because the consumers are the owners. In addition, co-ops are locally owned and operated. When members call the co-op, they are talking with their neighbors.

Kinds of Cooperatives
Cooperatives provide more than just electric service. There are cooperatives that provide telephone, food, daycare, legal services, insurance, pharmaceuticals, clothing...any product or service imaginable.
Some cooperatives are owned by multiple households, nonprofit and government agencies, or businesses like agricultural companies. Adams Electric Cooperative is a consumer cooperative. There are also producer cooperatives which help producers of a product (the members) share expenses and help maximize their returns. While there are many kinds of cooperatives, they are distinguished by member control and member benefit.

Local Cooperatives
Adams Electric Cooperative in Camp Point, Illinois is only one of several local cooperatives. Here are some examples of other local cooperatives: Adams Telephone Co-Operative in Golden provides telephone service. ABS Water Co-Operative in Camp Point provides water to rural areas. Adams County Farm Bureau in Quincy provides a means for farmers to work together towards goals and improve their economic well-being. Camp Point Mutual Insurance Company, with offices in Camp Point, Mt. Sterling and Virginia, provides insurance for homes, property and livestock. 1st Farm Credit Services in Quincy is a farmer-owned credit and financial services cooperative.
There are many other local cooperatives.

Well Known Cooperatives
Some of the more famous cooperatives are Ocean Spray, Land O’Lakes, Sunkist and Welch’s. Ocean Spray’s membership includes 800 cranberry growers and 126 grapefruit growers. Land O’Lakes members include 7,000 producer-members and 1,300 community cooperatives. Sunkist has about 6,500 members including California and Arizona citrus growers. Welch’s is a manufacturing and marketing branch of the National Grape Cooperative Association, Inc. owned by more than 1,400 grape growing members. There are over 40,000 cooperatives in the United States.