A business model that works
Basin Electric's structure and governance is based on the cooperative business model, which has proven itself time and again - we are in a stable financial condition in very unstable times.
Recent years have been tough for other electric utilities, but Basin Electric's ability to finance needed capital requirements at a reasonable cost is a key factor in sustaining our credit quality and providing a cost-based power supply to our members.
We sell wholesale power to our Class A members and others. The Class A members sell power to their distribution cooperatives (Basin Electric classifies distribution cooperatives as Class C members) who, in turn, sell power to retail customers.
There are also special membership categories entitled Class B and Class D members.
Two types of electric cooperatives
Generation and transmission (G&T) cooperatives both generate and transmit (wholesale) electricity to meet the power needs of distribution co-ops. Some G&Ts own neither generation resources nor transmission; they are are referred to as intermediate G&Ts.
Many electric cooperatives are distribution cooperatives that deliver (retail) electricity to consumers. Distribution cooperatives are often involved in community economic development projects, such as improvement in health care and educational facilities, and creation of jobs and small business incentives.
Electric cooperatives serve 42 million people in 47 states.
Basin Electric's structure and governance is based on the cooperative business model:
- We provide at-cost electric service.
- We are owned by the consumers we serve.
- We are governed by a board of directors elected from the membership.
- Our directors set policies and procedures that senior management implements.
- We are an independent electric utility business incorporated under the laws of the states in which we operate.
Take a look at the seven cooperative principles, listed on the National Rural Electric Cooperative Association's website.