Electric cooperatives are governed by the Seven Principles:

1st -- Voluntary and Open Membership; 2nd -- Democratic Member Control; 3rd – Members’ Economic Participation; 4th -- Autonomy and Independence; 5th – Education, Training, and Information; 6th – Cooperation Among Cooperatives; and 7th – Concern for Community.

Principles are moral anchors. You don’t hear folks talk about personal principles too much any more. Too may modern “heroes” – sports stars, media and movie celebrities, politicians – have disappointed us with their lack of principles… but when rural electric cooperatives were created over 70 years ago, what you thought and how you acted was important.

We believe it is still important today, especially in business and community relationships. This is why it is good to be reminded that the cooperative business model, which is much older than rural electric co-ops themselves – has its foundation in a set of enduring beliefs and principles.

Voluntary and Open Membership – This means we don’t discriminate. Cooperatives are open to all persons able to use the service and willing to accept the responsibilities of membership.

Democratic Member Control – We are controlled by our members, who are also our owners. They elect trustees at the Annual Meeting, and these persons set policies and make decisions on behalf of – and accountable to – the membership.

Members’ Economic Participation – Members contribute equally to -- and democratically control -- the capital of their cooperative. When folks ask why we accrue and reimburse patronage capital, I point them to the 3rd Cooperative Principle. Margins in excess of expenses from the business operation can be re-invested in the cooperative, allocated to a reserve, or refunded to the members in proportion to their transactions.

Autonomy and Independence – Cooperatives are autonomous, self-help organizations controlled by their members. We can enter into agreements with other organizations and raise capital from external sources, but we do so on terms that ensure our democratic member control. In other words, we can’t sell out and walk away from our responsibility to the membership… like what happens frequently in the investor-owned business world where decisions can be made to benefit a few powerful stockholders at the expense of the majority.

Education, Training, and Information – Recently, I was asked why we advertise on television, radio, and in newspapers. I cited the 5th Cooperative Principle. This principle is the very reason for the magazine you are holding in your hands and reading. We don’t keep our members in the dark. We share with them the details of our business activities and recommend ways they can more efficiently use the available services.

Cooperation Among Cooperatives -- When people ask why Buckeye Rural Electric Cooperative sends its line crews hundreds of miles away from home to help with power restoration after natural disasters, I cite the 6th Cooperative Principle. Cooperatives work together and support one another on the local, state, and national levels. Together, we are stronger and more effective.

Concern for Community – The final principle is one near and dear to everyone here at BREC. We care about the communities and neighborhoods, want to see them develop and prosper in a sustainable fashion. We strive to be a good corporate citizen, and our employees are encouraged to get involved. When we sponsor an event or make a contribution, we do so in the hopes of improving the quality of life in the communities we serve.

It’s good for all of us to be reminded of the Seven Cooperative Principles from time-to-time. Rural electric co-ops are unique in their history, organization, and operation. We exist to serve. The principles listed here provide moral compass points for that service.