New study examines economic benefits of electric cooperatives
A new report details the significant economic benefits provided by America’s electric cooperatives.
The report, Economic Powerhouses: The Economic Impacts of America’s Electric Cooperatives, examines the economic impacts of various activities conducted by cooperatives. These activities include the generation, transmission, and distribution of electricity, as well as capital investments and additional operations and maintenance expenses, among others.
Specifically, America’s electric cooperatives supported approximately 623,000 American jobs and contributed $111 billion annually to gross domestic product (GDP) from 2018 through 2022. Many of these impacts occur within the local communities served by co-ops, including 424,000 jobs and $75 billion annually in GDP.
The study was conducted for the National Rural Electric Cooperative Association (NRECA) and the National Rural Utilities Cooperative Finance Corporation (NRU-CFC) by Strategen Consulting, an energy strategy professional services firm.
“This report quantifies what many American families and businesses know well—electric cooperatives are powerful engines of economic development in their local communities,” NRECA CEO Jim Matheson said. “Affordable and reliable electricity is a key ingredient for a successful economy. Electric co-ops are focused on the long-term success of local communities as they keep the lights on and power economic growth.”
Further, the study revealed that cooperatives contributed $1.1 trillion in total U.S. sales output and $257 billion in labor income over the five-year period. Also, resulting federal tax revenues totaled $40.6 billion over this period or $8.1 billion annually. In addition, state and local tax revenues totaled $94.5 billion, or $18.9 billion annually.
“We’re seeing electric cooperatives expand their community investments and foster opportunities beyond traditional poles and wires—from creating business incubators to building broadband networks and attracting new employers. These endeavors are further advancing the billion-dollar economic impact of electric cooperatives locally and nationally,” Andrew Don, CEO of NRU-CFC, said.
The country’s approximately 900 consumer-owned, not-for-profit electric co-ops deliver power to 42 million Americans in 48 states across 56 percent of the nation’s landmass, including 92 percent of the country’s persistent poverty counties.
