Why are COOL! Bob Hunzinger President/CEO, Eastern Illini Electric Cooperative

What’s a CO-OP? Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America!

aspirations through a jointly- owned and democratically- What’s a co-op? “A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly- owned and democratically- controlled enterprise.” http://ica.coop/en/what-co-op/co-operative-identity-values-principles

Serving NEEDS Cooperatively. Banking Insurance Food Serving NEEDS Cooperatively. Child Care Electricity Cooperatives Are Everywhere there are needs…. Marketing Housing Health Care

30,000+ 100+ MILLION MEMBERS. USA Cooperatives co-ops serving It’[s a national trend—are YOU a member of a co-op? http://ica.coop/en/whats-co-op/co-operative-facts-figures Statistics are calculated from the subscription formula on ICA's 270 members from 96 countries (as at 11 June 2013).  ICA says 305 million members, but this includes multiple people. Bob Cohen with Braintree business development center says 100 million members in America is a more realistic number (June 2013).

How Did Co-ops Start?

Humble Beginnings Philadelphia Contributionship for Insurance of Houses from Loss by Fire 1752 Founded by Ben Franklin and fellow firefighters. Mutual risk (policyholders share risk). First known American cooperative; still in operation. History: www.contributionship.com/history/index.html

Humble Beginnings Rochdale Society of Equitable Pioneers 1844 Members: Weavers, bakers, wood and metal workers Bulk purchases for better quality flour, other products. Designed seven principles to govern the co-op. First modern-day Cooperative; first to pay patronage capital Industrial Revolution was forcing more and more skilled workers into poverty, weavers, bakers, some woodworkers and metal workers banded together to open their own store selling food items & they could not otherwise afford Dismayed that flour that was expensive, low quality and sometimes intentionally mixed with chalk or sawdust. So they gathered together a few pounds, made some bulk purchases, and opened a store. With lessons from prior failed attempts at co-operation in mind, they designed the now famous Rochdale Principles Reputation for high-quality, unadulterated goods The cooperative movement we know today traces its roots to a set of business guidelines drawn up by Charles Howarth, one of 28 weavers and other artisans who founded the Rochdale Society of Equitable Pioneers in Rochdale, England, on December 21, 1844. The tradesmen had banded together to open a store selling food items they could not otherwise afford, starting out with a meager selection of butter, sugar, flour, oatmeal, and a few candles but soon expanding to include tea and tobacco. Eventually, the enterprise was so successful that the group was able to open a cooperative factory and textile mill. When introduced into the United States by the National Grange in 1874, these “Rochdale Principles” fueled a cooperative explosion. After being formally written down by the International Cooperative Alliance (ICA) in 1937 (and last updated in 1995), they evolved into the seven cooperative principles used today.

PRINCIPLES: Why a Co-op? Common Voluntary and Open Membership Democratic Member Control Members’ Economic Participation Autonomy and Independence Education, Training, and Information Cooperation Among Cooperatives Concern for Community We all follow these seven principles—the same principles set by the Rochdale pioneers.

Common Principles Members’ Economic Participation: Co-ops provide services “at cost” and remain not-for-profit. Money left over after expenses (margins) belongs to members.

Common Principles Cooperation Among Cooperatives: Mutual support helps cooperatives improve services, bolster local economies, and deal more effectively with community needs Whether it’s co-op communicators from across the industry working together on common issues or electric co-ops sending lineworkers across state lines to help during a disaster, co-ops stick together.

Eastern Illini Electric Cooperative Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America! Eastern Illini Electric Cooperative

Eastern Illini Fast Facts Member/owner accounts: 13,545 Miles of line in service: 4,520 Number of employees: 56 Number of counties served: 10 Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America!

Eastern Illini Fast Facts Accounts/mile of line (density): 3 Total plant value: $94 million Total kWh sold in 2014: 247,462,085 Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America!

Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America! A Typical Substation

Eastern Illini’s Generation Mix 62% – Prairie State Generating Campus: featuring the latest in clean coal technology  22% – Long and short term contracts: various fuel types from Midwest providers 12% – Purchased on the spot market: through the Midwest System Operators (MISO) 4% – Wind power: purchased from the Pioneer Trial Wind Farm in Paxton Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America! Eastern Illini’s Generation Mix

Prairie State Generating Campus

Eastern Illini’s Operations Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America! Eastern Illini’s Operations

Eastern Illini’s Employees Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America! Eastern Illini’s Employees

Building a Better World 1930s: Less than 10 percent of farms had central station electric service, and at double the cost. 1935: FDR signs Rural Electrification Act. 1953: 90 percent of farms have power.

Building a Better World 900+ electric co-ops across America serve consumers across of America’s landmass. 75 percent 42 MILLION Electric co-ops shown in green on map

North American Electric Reliability Corp. Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America! North American Electric Reliability Corp.

Midcontinent Independent System Operator (MISO) Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America! Midcontinent Independent System Operator (MISO)

Pioneer Trail Wind Farm Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America! Pioneer Trail Wind Farm

Some folks hear co-op and think of a chicken coop, but co-ops blow past poultry. Here’s a quick primer for folks who’ve never heard of the business model that changed rural America! Smart Grid

Bob Hunzinger Bob.hunzinger@eiec.coop 800-824-5102 /easternillini Bob Hunzinger Bob.hunzinger@eiec.coop 800-824-5102