If you’re new to San Patricio Electric Cooperative or even a long-time member, you may not truly understand what it means to be part of a co-op. But it’s a powerful thing!

A brief history of cooperatives

Co-ops started in the late 1930s as a way to bring power to rural areas. At this time, nine out of 10 rural homes were without electricity. Investor owned utilities refused to extend service to these areas. It simply wasn’t profitable for them to expand and serve so few customers per mile of line.

Many of these rural residents were out of luck until the United States Congress passed the Rural Electrification Act on May 11, 1935. The Act established the Rural Electrification Administration (REA) and gave the organization the authority to give out loans for rural electrification.

Farmers, ranchers and other residents in rural areas across America formed groups called cooperatives in order to get the funds necessary to set up electric service. Anyone that wanted electricity had to sign an agreement to become a member of the cooperative. And each member was required to pay a membership fee each month to cover the cost of the REA loan and other expenses related to providing electric service.

Co-ops still work the same way today. Anyone who wants electricity in a cooperative’s service area is required to sign a membership application and must agree to pay a monthly membership fee in addition to the cost of electricity. As not-for-profit organizations, co-ops rely on these member fees to build, maintain and deliver electric service to those in rural areas.

What is the co-op difference?

• You are an owner. You’re so much more than just a customer, you’re an owner. Each and every member owns a piece of the cooperative.
• You have the power. As a member of SPEC you get a voice. We encourage our members to attend co-op meetings and vote on key issues. You can even run for a position on our Board of Directors. 

• We’re non-profit. We are driven by service, not profit. SPEC provides power at cost and returns money to you whenever possible. As a member, you may receive billing credits when we have money to return. After you've been with us a while, you might receive a capital credit check as well.
• We’re small. On average, we serve three meters per mile of line. That means we can respond to issues quickly and give you the reliable service you deserve.
• But we’re also mighty. One of our core principals is cooperation among cooperatives, which allows us to be a small organization with the power of a large company. SPEC is part of Touchstone Energy Cooperatives, a national alliance made up of more than 750 cooperatives. Together we serve 80 percent of the nation’s counties and make up the largest electric utility network in the United States.
• We give back. We are committed to the communities we serve and give back whenever we can. We support organizations, give out scholarships, send students to Washington, D.C., and more!
• You get extra benefits. SPEC is always looking for ways to give more to its members, and the Co-op Connections Program is one of the benefits you receive as a co-op member. Through the free program you’ll have access to discounts at thousands of local and national stores, hotels, restaurants, pharmacies and more.