What is the Appalachian Electric Cooperative?
The Appalachian Electric Cooperative is a rural electric cooperative providing electric service to portions of Jefferson, Grainger, Hamblen and Sevier counties in East Tennessee. It is a non-profit cooperative – organized, owned and controlled by the 43,000 members it serves. Its mission is to provide the membership with reliable, safe and efficient electric service in a courteous and timely manner at an affordable cost.

To become a member and part owner of the Cooperative, it is only necessary to pay a $5.00 membership fee and use the electric energy provided by the Cooperative. Each member has one vote in the operation of the Cooperative. An annual meeting is held on the first Saturday of October, to hear reports on business, elect directors for the board and to address other business that may come before the meeting.

Although the Cooperative is a nonprofit organization, it would be a bad business risk if it did not show some net earnings at the end of each year. These net earnings are either used to reinvest in the necessary expansions of the Cooperative (thus making it unnecessary to borrow that amount of money), or to help pay the long term debts. These net earnings also determine when a rate change is feasible.

In 1940, Appalachian Electric Cooperative borrowed money from the U.S. Department of Agriculture through the Rural Electrification Administration (REA). These funds were used to buy the existing electric facilities in the area. Today, the Cooperative continues to borrow the necessary money for needed expansions through this source. The original loans were paid back to the REA over a 35 year period, at low interest rates.

The Tennessee Valley Authority furnishes electric energy to the Cooperative at wholesale rates. Approximately .80 cents of every dollar that the Cooperative takes in goes to the TVA for power. The Cooperative has a wholesale power contract with TVA which stipulates the rates that the power will be sold to its members and the contract also provides that a rate reduction will be required if excessive profits are made by the Cooperative.

The Cooperative is operated by 88 dedicated and loyal employees. The Cooperative also paid (in 2005) about $776,063 in taxes to the counties and cities which it serves.