A non-profit membership corporation hat provides electric service to members. A member-elected Board of Directors sets rates and policies. Co-ops are eligible for financing from the federal Rural Utilities Service.

Member owned, non-profit business enterprise, incorporated under the laws of the state in which it operates. Any "margins" made by the cooperative are returned to the members in the form of capital credits.

or Electric Cooperative - A member-owned electric utility company serving retail electricity customers. Electric cooperatives may be engaged in the generation, wholesale purchasing, transmission, and/or distribution of electric power to serve the demands of their members on a not-for-profit basis. The MPSC may regulate electric cooperatives in Michigan. Electric cooperatives are sometimes called “distribution cooperatives.” For a directory of Michigan electric cooperatives, see http://cis.state.mi.us/mpsc/electric/address.htm#CooperativeUtilities .