Why Protecting Our Electric Cooperatives Keeps the Lights On

By Jeremy Richert, CEO
Every October during National Cooperative Month, we celebrate a legacy rooted in community and purpose. Rural electric co-ops were born in the 1930s out of necessity—bringing light and power to rural areas that investor-owned utilities simply left behind in the dark. Cooperatives were built by the people, for the people, and that mission-driven focus remains at the heart of everything we do today.

In Iowa, where you choose to plant roots, determines which electric utility serves you. Five decades ago, Iowa passed Senate File 1258, establishing defined electric service territories. This landmark law guaranteed that every square foot of our state has a utility obligated to deliver power upon request. Because of this protective boundary, reliable electricity is available to every single Iowan—no matter where they choose to live, work, farm, or explore.

These defined service areas do more than merely assign lines on a map; they build the foundation for long-term stability:
• Affordable & Resilient Infrastructure: Certainty allows cooperatives to make smart, long-range investments in power generation, grid upgrades, and cutting-edge technology without spiking rates.
• Proactive Maintenance: Clear territories empower co-ops to stay ahead of weather and outages with rigorous vegetation management and equipment upgrades.
• Thriving Local Economies: Cooperatives invest directly back into the places they serve, fueling economic development, creating jobs, and strengthening community tax bases.

The proof is in the numbers. From 2018 to 2023, Iowa electric consumers experienced 34% fewer outages on average compared to deregulated Midwestern states. Even when factoring in major weather events, Iowans still saw 20% fewer power disruptions. According to a 2023 New York Times investigation, “Deregulation has resulted in increased rates/fees in every state where it has been introduced. ... On average, residents living in a deregulated market pay $40 more per month for electricity...."

Weakening or dismantling Iowa’s defined service areas threatens this progress, opening the door to higher bills and diminished reliability. National Cooperative Month is a reminder that keeping local power strong, safe, and affordable requires protecting the policies that made it possible. 

Stand with us to protect our rural grid. Learn more and take action at www.ProtectRuralIowa.com.