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Issues

Rural Electric Cooperative Governance

Missouri’s rural electric co-ops are not like other utilities. We operate on a nonprofit basis and exist solely to serve our members. Our investors and our "customers" are one and the same. These member-owners govern and control their co-op by voting annually at the local level for the co-op’s board of directors. These directors set the rates to be charged and are responsible and accountable for all the co-op’s operations. Missouri’s electric co-ops serve primarily in the rural parts of the state and serve over 600,000 member-owners plus their families.

Missouri’s electric co-op network is organized into three tiers, each with a distinct responsibility. At the top are 40 local distribution co-ops that provide electric service directly to member-owners at their homes, farms and businesses. At the second level of the system are the six regional generation and transmission (G&T) co-ops that transmit power from the generator to the distribution systems. In 1961, the six G&Ts joined together to form Associated Electric Cooperative, Inc., (AECI) the system’s third tier and power producer. AECI generates power through its own electric generation plants, power procurement, and high-voltage transmission. Over the years AECI has built a diverse generating portfolio and a strong, integrated transmission system that provides economical and reliable power to its transmission and distribution co-ops. This three-tiered system is unique to Missouri and provides its member-owners with a self-reliant system that keeps rates affordable and electric service safe and reliable.

AMEC is strongly opposed to any legislation that would take away or infringe upon the rights of its member-owners to locally govern and control their co-ops.

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