The Cooperative Advantage of Our Business Model

Sioux Valley Energy is an electric cooperative, which means we operate differently than most businesses. We are a not-for-profit organization owned by the members we serve. Our Board of Directors is made up of members elected by their fellow members, and every decision is made with the best interests of the entire membership in mind, not outside investors.

One of the things that makes cooperatives unique is that we exist to provide reliable service at the lowest reasonable cost, not to generate profits. If revenues exceed expenses at the end of the year, the co-op earns margins. These margins are assigned to members as capital credits based on the amount they are billed for electricity during that year. The Cooperative uses those capital credits to help fund operations and reduce borrowing costs, with the goal of returning those funds to members in the future.

The cooperative model helps ensure that the costs of building and maintaining the electric system are shared fairly between today's members and future members. Significant investments are being made across the electric grid—including power plants, substations, poles, wires, transformers, and other equipment—to meet growing energy needs. These investments benefit members for decades, so it is important that the costs are shared across generations of members.