Little Rock, Arkansas — April.29 2024 — Arkansas’ electric cooperatives recently announced the results of a study examining the economic contributions that the state’s electric cooperatives have made within communities across the state from 2017 through 2022. Please view the study on our Economic Development page.
The study quantified the economic impact that electric cooperatives have on Arkansas and more specifically, on towns and communities where the cooperatives serve, according to J.D. Lowery, director of economic development for the Electric Cooperatives of Arkansas.
“The study clearly illustrates that the electric cooperatives in Arkansas are committed to work for the growth and continued development of their communities,” Lowery said. “This commitment guides cooperatives in helping communities create and sustain jobs, as well as work to improve life for the communities’ residents. It’s simply what cooperatives are all about.”
Lowery said that the cooperatives have been economic drivers in rural Arkansas since their inception 80 years ago. However, this study provides a more exact understanding of the quantitative and qualitative contributions made by the cooperatives.
Results of the study showed that from 2017 to 2022, state’s electric cooperatives:
- For every dollar spent by electric cooperatives in Arkansas, an additional $1.81 in economic activity is stimulated in the state.
- Arkansas electric cooperatives support more than 27,000 jobs with a total $26.1 billion investment in pay, benefits and infrastructure boosting the Arkansas economy over a five-year period.
- The activity by electric cooperatives in Arkansas contributed $11.6 billion to gross state product (GSP) between 2017 and 2022, for an average of $1.93 billion annually is the market value for all finished goods and services produced in the state.
- Arkansas electric cooperatives also generated $2.89 billion in state and local taxes over this period.
- Arkansas’ electric cooperatives employ more than 2,300 people across the state who operate in generation, transmission and distribution capacities, including subsidiaries that offer broadband services, utility support services and alternative energy resources.
- In the last six years, the 17 local distribution electric cooperatives have returned more than $211 million to its members in capital patronage payments.
- Had a $23 billion impact on employment and infrastructure spending;
- Served more than 1.2 million Arkansans;
- Contributed more than $5.3 million to philanthropies;
- Returned $131 million in direct payments to members through capital patronage dividends; and
- Maintained more than 75,000 miles of power lines.
Arkansas’ 17 local electric cooperative distribution systems, statewide association and generation and transmission cooperative serve approximately 600,000 members in 74 of the state’s 75 counties. The cooperatives are member-owned utilities established to provide reliable, affordable electric service to farms, homes, schools, churches, businesses and other establishments across the state in a responsible manner.
The distribution cooperatives own and govern Arkansas Electric Cooperatives, Inc. (AECI), a service association for the electric cooperatives, as well as Arkansas Electric Cooperative Corporation, a generation and transmission cooperative, which provides wholesale power to the distribution cooperatives.
For additional information, contact:
Rob Roedel, Electric Cooperatives of Arkansas, (501) 570-2296 or email Rob.