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Cooperative Principles

7 Co-Op Principles

Voluntary and Open Membership

Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

Democratic Member Control

Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. The elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner.

Members’ Economic Participation

Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.

Autonomy and Independence

Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.

Education, Training, and Information

Cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperatives. They inform the general public, particularly young people and opinion leaders, about the nature and benefits of cooperation.

Cooperation Among Cooperatives

Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.

Concern for Community

While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.

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©2025 Fergus Electric Cooperative, Inc. A Touchstone Energy Cooperative.

  • About Us
    • About FEC
    • About Touchstone Energy
    • Annual Meeting
    • Bylaws
    • Capital Credits
    • Unclaimed Capital Credits
    • Cooperative History
    • Cooperative Principles
    • Employee Directory
    • Employment Application
    • History
    • Mission Statement
    • Service Territory
    • Statement of Non-Discrimination
    • Questions/Comments
  • Billing Information
    • Bill Pay Options & Forms
    • Budget Billing
    • Energy Assistance
    • High Bill Concerns
    • Moving?
    • Questions/Comments
  • Board Information
    • Board Members
    • Board Minutes
  • Employment
  • Energy Information
    • Energy Information
    • Life Support
    • Net Metering
    • Outages
    • Rates
    • Security Lights
    • Questions/Comments
  • Member Services
    • Annual Meeting Scholarship Drawing
    • Basin Electric Scholarship
    • Community Commitment
    • Links
    • MECA/Fergus Scholarship
    • Rural Montana Newsletter
    • Together We Save
    • Youth to Washington Essay Contest
    • Questions/Comments
  • Safety
    • 811- Call Before You Dig
    • About Power Lines
    • Electrical Safety Checkup
    • Generator Safety
    • Power Lines
    • Report an Outage
    • Safety
    • Safety Around Your Home
    • Safety Demonstration Trailer
    • Safety Toolkit
    • Storm Center
    • Tree Trimming
    • Troubleshooting
    • Questions/Comments
  • Scheduled Outages