Power to the People: How Utility Populism Can Revolutionize Energy
"Discover the surprising potential of rural electric cooperatives to drive clean energy and empower communities."
In the aftermath of the 2016 election, much has been said about the disconnect between the political establishment and the American people. Often overlooked is the simple fact that many—especially the poor and marginalized—don't participate in the political process at all. Structural barriers and a sense of abandonment have left many feeling their voices don't matter.
But what if there was a way to reignite civic engagement while simultaneously addressing one of the most pressing issues of our time: climate change? Enter the twenty-first-century electric cooperative, a potentially transformative player in the struggle for power—both literal and political—in rural America.
These cooperatives, deeply rooted in the communities they serve, offer a unique opportunity to empower individuals, drive the transition to renewable energy, and challenge the status quo. Let's explore how utility populism is quietly reshaping the energy landscape and giving power back to the people.
Measuring Electricity Access
The U.S. Energy Information Administration lists state-, sector-, and utility-level data on net-metering capacity, meter counts, and energy sold back, as well as advanced-metering counts and megawatt-hours served. A global rural-electrification dataset provides historical household electrification rates for rural, urban, and all households across 124 developing countries, with 1,035 observations reaching back to 1960 for many countries. These resources offer ways to track access and electricity use, but the supplied source descriptions do not provide a current access total or a specific impact estimate.
Planning Rural Electrification
An overview of rural-electrification optimization methods frames them as analytical tools for planning progress toward Sustainable Development Goal 7: affordable, reliable, sustainable, and modern energy for all by 2030. It notes that most people without electricity access live in rural areas, making progress there especially important. A separate source describes the Rural Electrification Administration’s low-interest loans to rural areas for forming utility cooperatives where private firms declined to build lines because costs were high and expected returns relatively low. The supplied descriptions do not specify particular limitations of optimization methods.
The Rural Electrification Administration
The Rural Electrification Administration (REA) was created by executive order in May 1935 and made permanent by the 1936 act. It lent to farmer cooperatives to wire the countryside; one historical account reports that about 10% of farms had electricity in 1935 and nearly all did by 1960. A separate history describes U.S. rural electrification as a major initiative beginning in the 1930s, propelled in large part by the REA. Another historical account adds that investor-owned utilities had promoted rural electrification during the dozen years before the REA was created.
The Untapped Potential of Rural Electric Cooperatives (RECs)
Rural electric cooperatives (RECs) are member-owned and operated utilities that provide electricity to rural areas. Over 900 RECs serve 42 million ratepayers across 47 states, providing 11% of the nation's electricity. Crucially, they serve 93% of the country's persistent poverty counties, 85% of which are in non-metropolitan areas.
- Community Control: Member-owned structure empowers local residents.
- Renewable Integration: Driving the shift away from fossil fuels.
- Economic Benefits: Lower energy costs for households.
Political and Practical Barriers
A 2023 study of a region’s rural energy access reports that democracy had a substantial adverse effect on rural electrification and access to clean cooking solutions, and calls for reforming democratic principles and practices to support fairer infrastructure distribution between rural and urban areas. A 2024 review summary identifies economic, geographic, and social factors as interlocking challenges for rural electrification, and points to financing, technology deployment, and community engagement as areas requiring attention. Together, these sources caution that expanding access involves political and practical obstacles beyond the promise of utility models.
A Brighter Future Powered by the People
The story of rural electrification is a reminder that transformative change can come from the ground up. By empowering local communities and prioritizing their needs, RECs can pave the way for a more just and sustainable energy future.
Putting User Value at the Center
Research on rural electrification has not given sufficient attention to user value in assessing overall project success. The study’s analysis of project reports and indicators used by agencies active in the sector supports this critique. Its central implication is that evaluating electrification requires considering the value users receive, not relying solely on project activity or agency indicators.
Governance Shapes Access
A study focused on Sub-Saharan Africa describes rural electrification as shaped by the interaction of governance structures, institutional quality, and political systems. It argues that electricity access is not determined solely by technical capacity or financial investment, but also by the broader governance environment. This framing places institutional and political conditions alongside infrastructure and funding when explaining rural access.
Productive Uses in Rural Indonesia
A World Bank case study examines a utility–NGO partnership in Indonesia that promoted productive uses of electricity as part of a rural electrification program. The utility sought to expand power sales to help fund its ambitious electrification plans, while the World Bank aimed to maximize electricity use. The case study therefore connects electrification with both the utility’s financing goals and efforts to support productive activity.
However, challenges remain. From entrenched interests to the threat of federal budget cuts, RECs face significant obstacles. But the growing wave of member activism suggests that a new era of utility populism is on the horizon.
As we strive to build a cleaner, more equitable society, let's not overlook the potential of these community-owned powerhouses. By supporting and amplifying their efforts, we can truly bring power to the people and build a brighter future for all.