History of the Cooperative

Great Lakes Energy Cooperative, Inc. is a non-profit rural electric cooperative. That means that we are member/consumer-owned, and what we charge our members for delivering power to them cannot exceed our own actual costs. We are regulated by the Michigan Public Service Commission (MPSC) to be sure we meet these criteria.

Electric cooperatives were formed to bring power to rural areas when distributed electricity first became available. Since it was expensive to install all the equipment, poles, and lines that would bring power to homes and businesses, electric providers were reluctant to distribute power to sparsely populated rural areas, preferring instead to construct lines in densely populated city areas where they would realize more income per mile of line. Groups of country dwellers banded together into “co-ops” and obtained federal loans to build the first electric lines that reached into rural areas. From that point on, cooperatives charged rates to their members that just covered the cost of labor and equipment necessary for delivering power, maintaining their system, and making reasonable expansions and improvements to the lines. Any profit realized above such actual costs had to be returned by law to members of the co-ops. This non-profit, member/consumer-owned way of operating electric cooperatives continue today.

Oceana Electric Cooperative was formed in 1937. Its main office was located in Hart. O & A Electric Cooperative was also formed in 1937, with headquarters in Newaygo. In 1996, members of both cooperatives voted to merge their adjoining cooperatives as of January 1, 1997 into a new entity named Great Lakes Energy Cooperative.

Top ‘O Michigan Electric Cooperative began during 1937, headquartered in Boyne City. The first pole was set in Boyne City on June 2, 1938 and the whole town celebrated with “Pole Setting Day” specials at local businesses. Western Michigan Electric Cooperative, located in Scottville, was formed in 1938. Members of Top ‘O Michigan and Western voted to merge with Great Lakes Energy effective January 1, 1999. In doing so, they formed the third-largest electric utility in the state of Michigan, and the eighth largest member-owned electric cooperative in the United States.

Great Lakes Energy Cooperative, headquartered in Boyne City, provides power to more than 125,000 members and is governed by a board of directors made up of Great Lakes Energy members who are elected by fellow members. For general information about electric cooperatives, visit the National Rural Electric Cooperative Association (NRECA) or the Michigan Electric Cooperative Association (MECA).