Pioneer Electric Cooperative is committed to providing reliable electricity at the lowest possible cost. One key factor influencing our cost of service is member density—the number of members served per mile of power line.
Unlike investor-owned utilities like Alabama Power that operate in densely populated cities, we serve rural areas where homes are spread out. On average, investor-owned utilities serve about 34 customers per mile of line, while Pioneer Electric serves less than 5. This lower member density means the cost of building, maintaining and upgrading our infrastructure is spread across fewer members.
Every mile of power line requires materials, labor and ongoing maintenance. Whether that line serves one home or 20, the investment is significant. In rural areas, where fewer members share the cost, the price per member is naturally higher. Despite this challenge, we work diligently to control costs and secure the best rates for our members.
Cooperatives operate on a not-for-profit basis, meaning we do not have shareholders expecting returns. Instead, our focus is on providing affordable service while maintaining the reliability you depend on. This is why we invest in system improvements, explore cost-saving technologies, and advocate for policies that support rural electric service.
Investor-owned utilities focus on generating profits for their shareholders. Due to their low population density, rural areas generate less revenue per mile of infrastructure. The cost of serving low-density areas like ours outweighs the profit to be made. That’s why Alabama Power doesn’t serve your home. They prioritize more densely populated urban regions because the return on investment is higher.
In contrast, electric cooperatives (like Pioneer Electric) were specifically designed to serve rural areas. We are member-owned, nonprofit organizations that focus on providing affordable, reliable electricity to underserved rural regions, even when the return on investment is lower.
As a member of Pioneer Electric, you play a vital role in our cooperative. Your membership ensures we can continue powering homes, farms and businesses across our communities. We appreciate your support and remain committed to keeping your lights on at the lowest possible cost.
Please reach out to our team if you have any questions about your electric service. We’re always here to serve you—because at Pioneer Electric, we’re powered by our members.