Hoosier Energy on list of Top 100 cooperatives

For the third time in the last four years, Hoosier Energy, power supplier for 17 southern Indiana electric cooperatives, has earned a place on a national list of the top 100 revenue-earning cooperatives in the United States.

With 2004 revenues of $385 million, Hoosier Energy ranks 94th on the National Cooperative Bank (NCB) list of the nation’s top 100 revenue-earning cooperative businesses. The Bloomington-based power supplier had ranked 96th the previous year.

NCB tracks revenues generated by cooperatives to reflect the strength and yearly growth of co-ops nationwide. The continued strong performance of cooperatives is especially notable during these difficult economic times created by global conflict.

Unlike investor-owned firms, cooperatives are controlled by their members, who use and benefit from the goods and services provided. As a result, cooperative business organizations maximize economic benefits for members, not top-ranking executives or distant investors.

Hoosier Energy generates and transmits power and provides a variety of services for 17 central and southern Indiana electric cooperatives (REMCs/RECs). The power supply cooperative owns and operates two coal-fired baseload power plants and two natural-gas-fired peaking stations. As well, Hoosier Energy maintains a delivery network with 1,400 miles of high-voltage transmission lines and more than 200 substations.

Hoosier Energy member cooperatives provide dependable electric power to more than 650,000 residents, businesses, industries and farms in 48 Indiana counties. The power supply co-op’s 2004 revenues increased $45 million above those of 2003.

Although similar to other business models, a cooperative has several unique principles. It is owned and controlled by its members who have joined together to use the cooperative’s goods, services or facilities.

A board of directors, elected by the members, sets policies and procedures. By pooling resources, members leverage their power to buy, sell, market or bargain as one group, achieving economies of scale. Cooperatives also return a portion of margins to members.

In addition, communities benefit both socially and economically by the cooperatives’ business programs.

There are nearly 40,000 cooperatives in the United States representing a cross-section of business sectors including agriculture, energy, grocery, hardware and lumber, finance, housing and others. Household names such as Ace Hardware, Land O’Lakes and the Associated Press are cooperatives on the top 100 list.

Agriculture cooperative CHS, Inc. of St. Paul, Minnesota, tops the list of 100 cooperatives with 2004 revenues of $11 billion. Countrymark Cooperative is the only other Indiana cooperative on the list with $550 million in 2004 revenues to rank 73rd.