Community members powering a sustainable rural landscape.

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.

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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)

Community members powering a sustainable rural landscape.

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.

These cooperatives aren't just about delivering power; they're about community ownership and control. Nominally democratic, RECs have the potential to transform a sizable portion of America's energy sector, one of the highest-polluting parts of our economy. By integrating renewable energy sources, RECs can drive the transition away from carbon-intensive fuels, and, lower energy bills for its member owners.

  • Community Control: Member-owned structure empowers local residents.
  • Renewable Integration: Driving the shift away from fossil fuels.
  • Economic Benefits: Lower energy costs for households.
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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.

Across rural America, member-owners are already engaging in fights over their cooperatives, pushing for basic representation and energy efficiency. This blend of grassroots democracy and environmentalism could be the key to ensuring that the transition away from fossil fuels includes the poorest and most marginalized communities.

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.

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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.

The cooperatives and ratepayers at the center of the study

PopulationRural electric cooperatives (RECs), their members, and ratepayers[1]
Sample sizeOver 900 RECs; 42 million ratepayers[1]
Times cited1[1]

Cooperative scale and the governance questions around it

The paper describes RECs as a substantial part of the electricity system, while a separate account emphasizes their one-member, one-vote structure regardless of electricity use. That design was intended to support member oversight, but another account says governance problems tied to the separation of ownership and control have persisted.[1] [2]

Limits in the cooperative evidence

  • The paper excerpt links poor rural communities to shared electricity providers, but does not establish that provider choice causes their political exclusion.[1]

What remains unresolved about member power

  • How much active oversight do customer-members actually provide, beyond the equal-vote structure described in the separate account?[2]
  • Which specific governance-rule changes would address the persistent separation of ownership and control in RECs?[2]
  • Could cooperatives’ proposed role as rural broadband providers improve governance, and what oversight would accompany that role?[2]

About this Article -

Written with AI assistance from published research, and reviewed by the Mystum team. See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1353/dss.2017.0073, Alternate LINK

Title: Bringing Power To The People: The Unlikely Case For Utility Populism

Subject: Microbiology

Journal: Dissent

Publisher: Project Muse

Authors: Kate Aronoff

Published: 2017-01-01

Everything You Need To Know

1

What are Rural Electric Cooperatives (RECs), and why are they significant?

Rural electric cooperatives (RECs) are member-owned and operated utilities. They are crucial because they serve a significant number of ratepayers and are deeply rooted in their communities. These cooperatives aren't just about delivering power; they are about community ownership and control which can transform a sizable portion of America's energy sector. RECs are uniquely positioned to bring power—both literal and political—to underserved communities and they are the center for the transition to renewable energy and challenging established power structures.

2

What is utility populism?

Utility populism is the concept of using rural electric cooperatives (RECs) to drive clean energy initiatives and empower communities. This approach could reignite civic engagement while simultaneously addressing climate change. The core of utility populism lies in the member-owned and operated structure of the RECs which offers a unique opportunity to empower individuals, drive the transition to renewable energy, and challenge the status quo.

3

Why are RECs so important?

RECs are important because they serve a significant number of ratepayers across a large number of states. Furthermore, they play a crucial role in serving communities, particularly those in persistent poverty counties. The implications of RECs include the potential to transform the energy sector by integrating renewable energy sources, driving the transition away from carbon-intensive fuels, lowering energy bills for member owners, and ensuring that the transition away from fossil fuels includes the poorest and most marginalized communities.

4

How do RECs contribute to the transition to renewable energy?

The transition to renewable energy is crucial for RECs because they can drive the shift away from fossil fuels. By integrating renewable energy sources, RECs can lower energy bills for their member owners and contribute to a more sustainable energy future. This transition can be a blend of grassroots democracy and environmentalism ensuring that the transition away from fossil fuels includes the poorest and most marginalized communities.

5

How does community ownership and control impact RECs?

Member ownership and control are core features of RECs. This structure empowers local residents, fostering community ownership and providing economic benefits. It ensures that communities have a say in how their energy is produced and distributed. This structure is a blend of grassroots democracy and environmentalism, which could be the key to ensuring that the transition away from fossil fuels includes the poorest and most marginalized communities.

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