Electric cooperatives provide economic boost, new report says

Electric cooperatives supported nearly 612,000 American jobs and contributed $440 billion in U.S. GDP from 2013-2017, or $88 billion annually, from 2013 to 2017, according to a new report.

The report, called “The Economic Impact of America’s Electric Cooperatives,” also found that electric co-ops contributed $881 billion in U.S. sales output, $200 billion in labor income, and $112 billion in federal, state and local tax revenues.

“This report quantifies what many rural American families and businesses know well—electric cooperatives are powerful engines of economic development in their local communities,” National Rural Electric Cooperative Association (NRECA) CEO Jim Matheson said. “Affordable and reliable electricity is a key ingredient for a successful economy. Because electric cooperatives were built by, belong to, and are rooted in the communities that they serve, they play a vibrant role as economic cornerstones for millions of American families, businesses and workers.”

The report was conducted by FTI Consulting for the NRECA and the National Rural Utilities Cooperative Finance Corporation. FTI Consulting culled data from 815 distribution and 57 generation and transmission cooperatives.

“Access to electricity was a vital component of economic development and diversification in the mid-20th century, and that remains true today. Roughly one in eight residents nationwide are served by an electric co-op, meaning direct co-op employment and investments can ripple throughout the economy and create additional economic value for local communities, regions and the country,” Scott Nystrom, a director in the Economic Impact Analysis practice at FTI Consulting and an author of the report, added.

The report also found that electric co-ops spent $359 billion on goods and services, including $274 billion on operational expenditures, $60 billion on capital investments, $20 billion on maintenance, and $5 billion on credits retired and paid in cash to consumer-members.