Community Ownership of Energy Systems

Whether it’s the oil companies, the electric utilities, or the gas companies, it’s always the same story:  Jack up the price, bribe a few politicians, get some great tax breaks, and jack up the price again. It’s as if the guys who own the energy companies have all the fun.

If ownership of energy systems is what empowers you to make the rules, is it time for new ownership? If members of the community owned the energy systems, would they make different rules – rules that serve the best interests of their local community?

After researching community-ownership of energy systems for a long time, I’ve found a model that I really like. It is based on a cooperative business model, but with a unique twist: the function of the cooperative is to own controlling interest in limited-liability corporations (LLCs) that do energy projects. By owning a majority stake in the energy companies, the cooperative ensures that they operate in the public interest.

The cooperative starts new LLC’s from the ground up, or buys controlling interest in existing ones – either way, the important thing is ensuring that they serve the common good. The LLCs should turn a profit – the more the better, since community members own them – but they have a higher purpose than just making money. The energy projects are chosen to best serve the community where they are located through local job creation, local retention of energy dollars, and improved energy security and self-reliance for the long term.

There’s already an example of this business model in action in Massachusetts. It’s called Coop Power, and it’s on the web at www.cooppower.coop. They quickly raised $300,000 through membership fees, and then leveraged this money to get grant funding, equity investment (which they plan to buy back), and conventional loans – enough money to fund a $6 million biodiesel production plant. Neat, huh?

Comments

[Rebecca Procter]

Though we may sometimes rue the over-representation of moneyed folk in the showcase town of Santa Fe, I think we also have a large number of folks who are relatively well-heeled and who do have a genuine interest in alternative energy. In other words, we may have the progressive money one needs for this kind of project that is lacking in less advantaged New Mexico towns. Accessing this base, along with concerted outreach to the other economic strata in our community, could be a start toward the locally owned LLC's you envision.