October is National Cooperative Month, a time we celebrate our business model built on local ownership, community commitment, and service. As South Central Power Company marks its 90th anniversary this year, it’s also an opportunity to reflect on what being a cooperative means and why that difference matters as much today as it did in 1936.
South Central was created by local farmers who came together to bring electricity to rural communities that investor-owned utilities chose not to serve. While much has changed over the last nine decades, one thing remains the same: We exist to serve our members, not outside shareholders.
That cooperative difference shows up in several important ways.
First, our members benefit from cooperative ownership of power generation. Through our ownership in Buckeye Power, the generation and transmission cooperative that supplies electricity to South Central and other Ohio electric cooperatives, we have access to reliable, affordable baseload generation resources that help keep power costs stable. As electricity demand continues to grow across Ohio and the region, that ownership becomes increasingly valuable.
Earlier this year, Ohio’s Electric Cooperatives adopted policies designed to protect those existing power resources for the residential and business members we serve today and in the future. New large-load customers, such as data centers, will be responsible for the costs of the additional generation needed to serve them. Our commitment is simple: Existing members should not have to subsidize the electric needs of new, energy-intensive developments.
Second, cooperatives operate on a not-for-profit, cost-based model. Unlike investor-owned utilities, which are expected to generate returns for shareholders, your cooperative returns any margins it generates to the members who own it.
That benefit was evident this year when South Central received approximately $13 million in rebates from Buckeye Power. Those savings were passed directly to members through reductions in the generation portion of electric bills during June and July. Members also benefit from capital credits, another unique feature of cooperative ownership, which returns the value of member participation back to the people who use the system.
Finally, cooperatives are built around service. It is more than a slogan. It is the reason we exist.
Whether responding to outages at any hour of the day or night, maintaining and upgrading our electric system, investing in local schools and communities, or helping members who call our offices, service remains at the center of everything we do. When you contact South Central, you’ll reach local employees who live and work in the communities we serve and understand the needs of our members.
As we celebrate Cooperative Month during our 90th year, I am reminded that the cooperative model continues to deliver real value. Affordable and reliable electricity, local accountability, member ownership, and a commitment to service are the principles upon which we were founded, and the foundation of our future.
Thank you for being a member of South Central Power Company. Together, we will continue building a stronger cooperative and stronger communities for generations to come.
By Rick Lemonds, president and CEO