Arkansas Electric Cooperatives, Inc. |
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Providing service the cooperative way
In the fall of 1941, America had not yet entered World War II, but on the Arkansas home front another kind of battle was already being waged. The state's electric cooperatives, created in the late 1930s, were fighting that autumn for their survival against opponents of the rural electrification movement. To win that battle, they decided they must be unified. To achieve this objective, they decided to form an association, known then as the Arkansas State Electric Cooperative, Inc., (ASECI).
That association is known today as Arkansas Electric Cooperatives, Inc., (AECI). It is a non-profit cooperative owned by the state's 17 electric distribution cooperatives and has yearly revenue of about $150 million. As it did at its inception, AECI continues to help the cooperatives win political battles, but it also offers many other services for its members. AECI's departments provide such
services as the statewide training program, electrical equipment and supplies, right-of-way maintenance, construction crews for distribution systems, testing of equipment, communications/public relations assistance, and safety training, among other things.
Incorporated in 1942
It is a far cry from the spring of 1942 when ASECI was incorporated. The brainchild of Thomas B. Fitzhugh, a strong supporter of rural electrification and the former chairman of the Arkansas Public Service Commission, ASECI did not have a full-time employee until 1946 when Ed Thomas was hired to be the editor of the Arkansas REA News, now Rural Arkansas magazine. Fitzhugh, a Little Rock attorney, led the cooperative on a part-time basis until 1948 when Harry L. Oswald, a former employee for the Rural Electrification Administration (REA), took over reigns as general manager.
From disputes over service territories to the cooperatives' right to own generating facilities, ASECI fought against the opposition led by investor-owned utilities. And the cooperatives had much success as legislation was passed in 1955 giving them the right to build their own power plants and, two years later, a law was passed to protect the boundaries of their service territories.
A service cooperative is built
Although representing the state's electric cooperatives in the political arena was ASECI's main function, other services soon were developed. And the reason was simple. The cooperative needed ways to make money to fund its efforts in the political arena.
The first venture for the cooperative was a transformer repair shop, which was located in Jacksonville. Next, a meter shop was added and a print shop, electrical equipment sales department and, eventually, right-of-way and construction services were created.
AECI saves cooperatives money
Although the services were formed to support ASECI, they were also a great benefit to the state's electric distribution cooperatives. Through ASECI, the cooperatives had access to services they would not have been able to afford otherwise. Plus, as members of the cooperative, they were able to share in its profits.
In the 1960s, ASECI became AECI and the Little Rock-based organization grew to offer services to cooperatives beyond the state's borders. In fact, the breadth of services was unmatched by any other statewide electric cooperative association. Most of those services are still offered today and others have evolved to continue to meet the cooperatives' needs.
ELECTRIC COOPERATIVES OF ARKANSAS
1 Cooperative Way
Little Rock, AR 72209
501-570-2200
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