Questions and Answers about Mountain Electric Cooperative

1. What kind of organization is Mountain Electric Cooperative?

It is a non-profit electric cooperative, chartered under the laws of Tennessee to distribute electric energy to the people living in its service area.

2. When was Mountain Electric Cooperative organized?

MEC was formed on April 1, 1941. The cooperative was to build and maintain a system to distribute electricity in Johnson County, TN , Avery County, NC and part of Carter County, TN.

3. What is meant by a "rural electric cooperative?"

A rural electric cooperative is similar to any other cooperative in that it was organized by a group of people to perform a service or provide a product for members of that group.

4. Do the people actually own the cooperative?

Yes, there are over 33,000 customers/members in MEC's service area that covers the counties of Johnson, Avery, and parts of Carter, Watauga, Burke and McDowell, who are the owners of the cooperative.

5. How do you become a member of the cooperative?

A person becomes a member by paying a $5 membership fee, agreeing to buy electricity from MEC, and agreeing to comply with its rules and regulations.

6. Why was it necessary to form cooperatives to distribute electricity in rural areas?

No other company or organization would undertake the job because of the low population and remoteness of the area. They didn't think they could make a profit.

7. Who controls the cooperative?

The members control it through an elected Board of Trustees. The Board of Trustees is composed of 8 members - Three from Johnson County, 3 from Avery County and 2 from Roan Mountain. The board members are also members of the cooperative.

8. When are the Trustees elected?

Each August there are district meetings held for the members of that district to vote for the candidate of their choice.

9. How are the Trustees elected?

Nominations are made by a signed petition (10 members required on petition). The voting is conducted at district meetings every 3 years by written ballot, and trustees serve three-year terms.

10. What are the duties of the Board of Trustees?

The board is the policy making and supervisory body for MEC. It sees that the cooperative is run properly and to the best interest of all members and that the policies agreed upon are carried out. The board employs a General Manager to oversee the cooperative's day-to-day operations.

11. Where does the electricity come from?

MEC purchases electricity from the Tennessee Valley Authority (TVA) at wholesale rates and distributes it to MEC members. TVA has no control over the cooperative other than requiring that it meet certain regulations and obligations of its power contract. TVA has generation facilities all over the 5-state area called the Tennessee Valley. Generation is accomplished by hydro, coal, nuclear, and fossil sources of
energy.

12. Are there other cooperatives in Tennessee and across the country?

There are 23 rural electric cooperatives in Tennessee and almost one thousand in the United States. In Tennessee, electric cooperatives serve almost one-third of the total population. Across the United States, electric cooperatives serve over 33 million people. That's about 10 percent of the nation's population.

13. What does MEC do for its members besides provide electricity?

MEC has a wide variety of programs to help its members get the most efficient use out of electricity. MEC offers low-interest financing for the installation of heat pumps. MEC offers help in building energy-efficient homes through its home planning kits and cash incentives including water heater rebates. Services like surge protection and long distance phone service have been added for MEC customer convenience. There are several bill payment options such as electronic bank draft, levelized billing and
special billing dates to assist members in paying monthly electric bills. MEC is active in area school systems, sponsoring programs like the Washington, D.C. Youth Essay Contest, Louie the Lighting Bug and Electrojuice safety programs, 4-H Electric Camp, Youth Leadership Seminar, MEC also offers presentations to area schools and civic Organizations on a variety of safety topics. There are also services available to small business and industrial customers including low-interest financing which creates jobs, and technical advice on better practices, new technology, energy conservation, and wise use of electricity.

14. How do Mountain Electric Cooperative's electric rates compare with those of other systems?

Tennessee's average electric rate, at about 8 cents per kilowatt hour, is lower than the national average.

15. How does being a member of a cooperative help keep electric costs low?

One good example is that MEC does not buy rights of way, areas of land through which electric lines run. Instead, they are donated by the members. The idea is that the line had to cross someone's land to get to your house, so you should let the line cross your land to get to the family down the road. If MEC paid you for the strip of land needed for the line to cross your land, it would have to charge more for the electricity it sells you. By cooperation, costs are kept down and everyone can enjoy low-cost cooperative electricity.

If you have any more questions or need more information, call customer service at 423-727-1811.

You can learn more about the cooperative and its services by visiting

www.tva.gov
www.energyright.com