Electric cooperatives must charge for new construction to cover the costs of building and maintaining the infrastructure required to deliver power, such as power lines, transformers and equipment. Unlike for-profit utilities, co-ops are not-for-profit organizations, owned by their members. All operating and new construction costs must be covered to ensure the financial health of the cooperative. Members adding new service(s) are required to cover their costs for labor and materials, to prevent existing members from having to subsidize new construction costs.
