AN ASSESSMENT OF MEMBER EDUCATION AND COMMUNICATION PROGRAMS IN RURAL ELECTRIC COOPERATIVES.

• Author: Haigh, Michel M.
• Position: Bibliography included - Statistical Data Included

Introduction

A farmer giving witness in a Tennessee church in the early 1940s said, "Brothers and sisters, I want to tell you this: The greatest thing on earth is to have the love of God in your heart, and the next greatest thing is to have electricity in your house" (Crain, 1998, p.1).

NRECA defined a cooperative as a "user-owned and user-controlled business that distributes benefits on the basis of use. A business voluntarily owned and controlled by its member patrons and operated for them and by them on a non-profit or cost basis; it is an association with an economic objective owned and run by the people who use it and operate for their mutual benefit." They also see education as the act or process of imparting or obtaining knowledge or skill (NRECA, 1998a).

There are seven cooperative principles that cooperatives must adhere to. They include:

1. ) voluntary and open membership;

2. ) democratic control;

3. ) member economic participation;

4. ) autonomy and independence;

5. ) education, training, and information;

6. ) cooperation among cooperatives; and

7. ) concern for communities (Hoyt, 1996).

   The Importance of Communication

   In April of 1996, the Federal Energy Regulatory Commission (FERC) gave orders that led to wholesale competition in the electric power industry. These directives were discussed in "The Energy Policy Act" which became law in 1992 (NRECA, 1998b). These orders have led to deregulation within the electric utility industry. According to Silberstein (1998), deregulation is "the process that states would go through to 'unbundle' transmission, distribution, and generation functions into separate components" (p. 19).

   The National Council said that a key to a successful market transition is an informed consumer. "If consumers believe they have adequate information available to them, they are far more likely to embrace the decision to move to a competitive environment. The National Association of Regulatory Utility Commissioners (NARUC) adopted a resolution in 1996 that supported the consumer right to know disclosure policy. The group thought is important that consumers were able to compare prices, price variability, and other characteristics of their electricity purchase. Disclosing information to consumers would accomplish three goals. (1) It would allow customers to make the choices they wish to make, and provide information for them to find the prices they are willing to pay. (2) Disclosing information enhances consumer protection. (3) This information disclosure would allow the new electricity market to function more efficiently" (The National Council, 1998).

   With these changes taking place, cooperative principle number five, which addresses education and training, is becoming more important. The traditional cooperative principle number five sets guidelines for member education and communications programs that should be followed. Education through communications is a high priority for cooperatives. This effort should consist of more than just advertising and distributing information. Communication "is critical to the effective and informed participation of members which lies at the core of the cooperative definition" (Hoyt, 1996, p. 5).

   Education through communications plays an important role in rural electric cooperatives. "Education = understanding. The need to continue that educative role is even greater today. ...In fact, cooperative education is going to have to be a necessity, a priority; in long-range planning" (Jamese, 1982, p. 37).

   A cooperative must realize that communications and education are important every day, not just during times of change. They must also realize that there is more to successful cooperative education and communications programs than meeting cooperative principles. Cooperatives have to want to perform this function. "If we establish and operate member information and education programs because it's the thing to do, because it's tradition, and because it's a cooperative principle, our cooperative won't get its money's worth" (Erickson, 1989, pp. 101-102).

   The importance of member education and communications is often overlooked by cooperatives. Education and communications are important to a cooperative having informed and active participants. This is easily put on hold as more pressing things take staff time. It is important to stay in touch with members. "It is important that there be a continuous information exchange between the electrical system and its publics. There must be some link to connect them" (Chesnutt, 1997, p. 14).

   Member support is the key to a cooperative's success. In the early days of rural electrics, it was no problem. Members had waited patiently for electricity; and they took an active role in the cooperative ("Electric Cooperatives," 1996). Today, many member-owners are removed from the tight knit feeling their parents and grandparents had because they have always had electricity.

   When members recognize the coop as their own business they become more informed. They start taking an active role by serving on the board of directors and attending annual meetings. The success of the cooperative depends on the spirit and commitment of its members (Case, 1982). Communications activities are never done because there is the challenge of informing succeeding generations of members (Matteson, 1997).

   Sometimes these programs are cut from the cooperative's budget as an easy way to save money. The expenses of a communication professional's salary, the cost of printing a newsletter, and other forms of communication are easy targets during cutbacks (Erickson. 1989). "Today' s managers are results-and bottom-line oriented. They must be in order to survive in a world of extreme competitive pressures. And we cooperative communicators are illadvised to assume that our communications programs can any longer be justified by the simple dogma that education is, after all, a cooperative principle," (Matteson, 1997, p. 2).

   Education usually pays for itself and contributes to a cooperative's productivity. "Education is an expensive activity, but it can be a cost effective one. The alternative, which is nonperformance or subpar performance, can be even more expensive for an organization" (Webb, 1990, p. 57).

   Cooperative education is a constant process that develops active members (Schriver, 1986). Education is the key building block to having a productive cooperative (Thomas, 1990). "Critical to improving the commitment of organizations to this effort is recognizing education's importance to operating cooperatives. Education can then gain a firmer foothold within individual cooperatives" (Dunn, 1993, p. 23). Through education, cooperatives can change attitudes, knowledge, and behavior of employees, directors, members, and the general public (Webb, 1990).

   "Communication breaks leave members feeling disconnected and frequently unclear about how their efforts and labor tie into the organization. ...Members make financial, emotional, and intellectual investments in their organizations" (Gray & Duffey, 1996, p.8).

   There are numerous methods of educating through communication. Face-to-face, one-on-one, letters, brochures, advertisements, and electronic media are just a few examples. (Chesnutt, 1997).

   Purpose

   Examining the cooperative principles from time to time makes cooperatives aware of their duties. Times are changing, and because of this, a former youth tour participant decided to evaluate cooperative education and communications programs. This study was meant to create awareness among cooperatives and academia about the importance of cooperative principles and the need to educate and communicate...