About Sulphur springs valley electric cooperative, inc

 Created in 1938, Sulphur Springs Valley Electric Cooperative has grown from serving 266 members in rural northeast Cochise County, to more than 59,000 meters and the largest electric cooperative in Arizona today. Thanks to its members, SSVEC has expanded its service area to more than 5,700 square miles where it maintains 32 substations, more than 4,200 miles of energized line, 187 fleet vehicles and a workforce of 161 employees. Throughout its 81-years of progress, SSVEC has been guided by the seven cooperative principles, including voluntary membership, democratic member control, member economic participation, autonomy and independence, ongoing education and training, cooperation with other cooperatives, and concern for the community. 

Rights:

• To notification regarding changes in the status of the service received
• To privacy
• To refunds of patronage capital (capital credits)
• To courtesy
• To information regarding business operations and patronage capital
• To inspection of the books
• To information about changes in rates
• To consideration on complaints or disagreements
• To vote for their directors

Duties:

• To use electrical power
• To abide by the terms and conditions by which service is provided
• To have premises properly wired
• To furnish rights-of-way
• To provide safe access to premises
• To furnish equity capital

A cooperative is a nonprofit enterprise or organization jointly owned and equally controlled by those using its services for mutual benefit. Customers who receive service are members of the cooperative and, as such, share responsibility for its success or failure along with the benefits they receive.

As democratic institutions, electric cooperatives afford a large number of people-the member-owners-an opportunity to take part in the decision-making of their cooperative’s business. All member-owners participate in the operation of the cooperative through their votes. Each member is entitled to one vote in cooperative elections. This process ensures that cooperative members have controlling authority over the cooperative’s board of directors. The one-member, one-vote concept is not only a right of cooperative members, it is a responsibility.

Power companies, by contrast, are controlled by stockholders who, for the most part, do not live in the service territory of the company. Stockholders and customers have quite different interests. The owner of share of stock quite rightly wants larger dividends and an increase in the market value of the stock. The customer, on the other hand, wants lower rates and better service.

In actual operation, the cooperative conducts its business much the same as any other electric utility. Its difference lies in the ownership and how the wishes of these owners are carried out.

1: Voluntary and open membership

 Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political, or religious discrimination. 

2: Democratic member control

 Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. 

3: Member economic participation

 Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative.

4: Autonomy and independence

 Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy. 

5: Education, training and information

 Cooperatives provide education and training for their members, elected representatives, managers and employees about the nature and benefits of cooperation so they can contribute effectively to the development of their cooperatives.

6: Cooperation among cooperatives

 Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures. 

7: Concern for community

 While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members. 

 The Sulphur Springs Valley Electric Cooperative Board of Directors consists of 10 representatives who are elected by members residing within the ten districts throughout the service area. Board members oversee the financial operation of the Cooperative, as well as establish and approve its policies.

They are elected to three-year terms and meet every month, with the location of the meeting rotating to the SSVEC offices in Willcox, Benson and Sierra Vista. Annual elections are conducted by mail, with ballots being delivered to each member within the districts where Directors are being elected. Terms are staggered so that not more than four directors are elected in a single year. SSVEC bylaws, which are available to the public on the Cooperative website at ssvec.org, outline the specific procedures that assure a fair election and democratic representation on the board.

Current directors have a variety of backgrounds, including agriculture, public safety, small business, education, engineering, management, military and the electric utility industry.

Your Directors are required to attend education and training sessions to learn more about their role in the Cooperative, the legal requirements and liabilities of their position, various advances in technology and consumer trends, and the effectiveness of Directors in governance issues.

One of the benefits of being a cooperative member is sharing in the margins (profits) of the cooperative. Money earned by the cooperative in excess of expenses is known as margins and the money set aside for return to members is known as patronage capital credits.

Each year, the SSVEC Board of Directors reviews the financial status of the cooperative and analyzes the accumulated capital credits. It is their decision whether capital credits will be retired based on the cooperative’s equity. They also determine the total amount to be retired to members and the method of retirement.

At the end of each year margins are allocated (assigned) to members based on the amount of energy they purchased from SSVEC throughout the designated year. This means the total sales of kilowatt hours is divided into the total dollar margins. Each member’s share in dollars and cents is entered on the books of the cooperative. The capital credits amount is proportional to the energy purchased in kilowatt hours.