More than just electricity

Nearly 90 years ago, electric cooperatives were the first utility to power — and empower — rural Arkansas. Today, the Electric Cooperatives of Arkansas continue to have a wide-ranging economic impact on the state while continuing to work to improve the quality of lives of Arkansans.

Arkansas’ electric cooperatives cover a large territory, serving more than 600,000 homes, farms and businesses in 74 of the state’s 75 counties. The electric cooperatives’ service areas encompass more than 60 percent of the state’s land mass. Collectively, Arkansas’ electric cooperatives maintain more than 75,000 miles of transmission and power distribution lines.

A 2023 study by Boyette Strategic Advisors, an economic development consulting firm with offices in Little Rock and Atlanta, measured the projected effect of the capital investment, maintenance and operating costs for the electric cooperative generation and transmission cooperative, Arkansas Electric Cooperative Corporation (AECC), and the cooperative statewide services association, Arkansas Electric Cooperatives, Inc. (AECI) and its subsidiaries, and the 17 local electric distribution cooperatives. The study can be viewed here.

While many people know that electric cooperatives offer local, reliable service to members and excellent employment opportunities, this report illustrates the extent to which cooperatives serve as economic engines for their communities.

Some of the study’s findings:

• For every dollar spent by electric cooperatives in Arkansas, an additional $1.81 in economic activity is stimulated in the state.

• Arkansas electric cooperatives support more than 27,000 jobs with a total $26.1 billion investment in pay, benefits and infrastructure boosting the Arkansas economy over a five-year period.

• The activity by electric cooperatives in Arkansas contributed $11.6 billion to gross state product (GSP) between 2017 and 2022, for an average of $1.93 billion annually. GSP is the market value for all finished goods and services produced in the state.

• Arkansas electric cooperatives also generated $2.89 billion in state and local taxes over this period. In 2022, AECC, AECI and the 17 local electric cooperatives paid more than $34 million in property taxes.

• Arkansas’ electric cooperatives employ more than 2,300 people across the state who operate in generation, transmission and distribution capacities, including subsidiaries that offer broadband services, utility support services and alternative energy resources.

• In the last six years, the 17 local distribution electric cooperatives have returned more than $211 million to their members in capital patronage payments.

Dating back to the 1930s, electric cooperatives have furthered economic development in rural Arkansas, investing in the wires, poles and other power generation and delivery infrastructure to ensure that electricity is delivered to members in a reliable, affordable and responsible manner. The Electric Cooperatives of Arkanas continue to grow their overarching positive impact today, supporting economic development through the recruitment of new employers and deploying high-speed broadband networks throughout the state.

On a national level, more than 900 electric cooperatives have a wide-ranging economic impact, supporting approximately 623,000 jobs with $51 billion in pay and benefits each year while contributing billions of dollars to the economy over a five-year period from 2017-2022. Collectively, electric cooperatives serve more than 42 million members, including farms, homes and businesses.

According to the report, “Economic Powerhouses: The Economic Impact of America’s Electric Cooperatives,” electric cooperatives’ activities contributed $554 billion to the U.S. gross domestic product (GDP) between 2018 and 2022, with an average of $111 billion a year. The national study was commissioned by the National Rural Electric Cooperative Association and the National Rural Utilities Cooperative Finance Corporation and conducted by Strategen Consulting, an energy strategy consulting firm.

Although consumers served by the state’s 17 electric distribution cooperatives often are only aware of their local electric cooperative, if each of the nation’s autonomous electric cooperatives were combined the organization would be one of the largest utility companies in the nation. The ongoing success of the electric cooperatives in our state, nation and internationally is because local, democratically-elected electric cooperative members serve as the board of directors of each cooperative. This model ensures that the local electric cooperative serves the best interests of the communities that the cooperative powers. This power includes not only electricity, but also the economy of the communities served as illustrated in the recent economic impact studies.

The Electric Cooperatives of Arkansas are honored to serve our members and contribute to the economic success of The Natural State.

Editor’s note: Vernon “Buddy” Hasten is the president/CEO of Arkansas Electric Cooperative Corporation (AECC) and Arkansas Electric Cooperatives, Inc. (AECI). Collectively, AECC, AECI and the 17 local electric distribution cooperatives in Arkansas are branded as the Electric Cooperatives of Arkansas. The opinions expressed are those of the author.