Seattle Renewable Energy Meet-up Oct. 2010

1. NW Co-op Development Center
Seattle Renewable Energy Meet-up Group
Oct. 28th
, 2010
Eric Bowman, Cooperative Development Specialist
eric@nwcdc.coop
Teresa Young, Organizational Development Specialist
teresa@nwcdc.coop
1063 S Capitol Way # 211
Olympia, WA 98501
360.943.4241

2. Presentation Overview
1. Intro
2. Co-ops 101 and Overview
3. Models
– Consumer
– Community Solar
– Worker
1. Q&A

3. NWCDC
The Center
a 501(c)3 nonprofit which provides development services
for new and existing co-ops
Our mission
to foster community economic development through the
co-op business model
We’re
a team of co-op developers with skills specific to start-up
and organizational business development

4. Co-op Role
U.S. Facts:
– 3,000 farmer co-ops market 30% of farmers’ products
– 6,400 housing co-ops provide 1.5m homes
– 10,000 credit unions provide services to 84m
members
– 1,000 rural electrics operate ½ the nation’s
distribution
– 47,000 co-ops serve 43% of the population
Top 100 co-ops’ 2009 revenues = $176 Billion!

5. Co-ops 101
Investor owned:
Sole proprietor:
Co-ops are member:
◦ Owned
◦ Benefited
◦ Controlled

6. Ownership
Member-Owners can be
– Consumers
– Producers/Farmers
– Workers
– Other Businesses

7. Distributionism
Consumer
◦ Credit Unions
◦ Housing
◦ Retail (e.g. food co-ops)
◦ Farm Supply
Two Schools
Producer
◦ Worker
◦ Farmer
◦ Artisan
◦ Business

8. Why Cooperate?
…to access resources not individually achievable
Marketable Co-op Benefits; “Goodwill”
• Keep profits, ownership and control local
• Accountable
• Trusted

9. Relationships and Authority

10. Unique Characteristics of Co-ops
• Owned/controlled by members, not outside investors
• Exist solely to serve members
• Return surplus to members based on use, not
investment
• Pay taxes on income kept for investment/reserves;
surplus revenue returned to members who pay taxes
• Economy of scale = valued added

11. Consumer Models
Consumers aggregate to:
• Bulk buy
• Govern management
• Keep margins low
Models:
• Housing
• Credit unions
• Food co-ops

12. Flower Power – Salem, OR
• 60 Members
• SeQuential B99 at cost plus:
– OR/Fed Road taxes
– Delivery fee
– $.05 co-op overhead
• Pringle Creek:
– Waived rent/utilities
– Building garage

13. Residents in Eliot, ME
• 65 homeowners and small
businesses
• Co-op bulk purchase HHO,
“bioheat”
• Average savings ~$300
• locked-in price
– capped "downside
protection"
– always pay the lowest price

14. Assn negotiates fuel
for timber harvesters,
haulers, etc.
Up to $.25 per gal
savings!

15. Bulk buying Solar
One Block Off the Grid (not a co-op):
• Lower costs
• Less confusion
• Trusted contractors
“Solar power meets consumer power:
Group discounts help you buy home solar power”

16. Co-op Owned Infrastructure
Baywind Energy Co-op
• 1,300 members
• 2.5 MW farm
Westmill Wind Farm
• 2,000 members
• 6.5 MW farm
Characteristics:
• One member = 1 vote
• Shares and loans sold to community
• U.K.

17. Community Solar
• Community ownership:
– Might be a co-op, might not
– Co-op pools project participants
– Facilitated/managed by for profit developer
– “condo” model
– Joint venture

18. What is a Worker Cooperative?
•Worker Owned
•Worker Controlled

19. Worker-Owned
• Investment buy-in
• Worker-owner receives a portion of the
revenue after expenses
• Conventional businesses refer to this as profit
• Co-ops call it surplus

20. Arizmendi Bakery

21. Worker-Controlled
• Democratic decision
– one worker-member = one vote
• Worker-Control takes many forms depending
on the size and type of business
• Each business creates the structure best
suited to their needs

22. Democratic Workplaces
• Cooperatives: “one member, one vote”
• Collectives: democratic but not owned by
• LLCs: shared ownership, protected debt
• Democratic ESOPs: usually own stock and
share profits

23. Types of Worker Co-ops
• Service: housekeepers, taxis..
• Retail: grocery, bakeries, bookstores…
• Health Care: nursing, Clinics, bodywork..
• Skilled trades: printing, plumbing…
• Manufacturing & engineering: fabrication...
• Technology: web hosting...
• Education: Charter schools…
• Media and the arts: designers, galleries…

24. Questions to ask yourselves
• What kind of business do you have in mind?
• What are your goals?
• Does the Co-op model fit those goals?
• How many people are currently involved and
who else do you hope to involve?
• Do you have the skills to do a feasibility study
or business plan?
• What assistance are you going to need?

25. More Questions
• What kind of organizational/management
structure?
• Do you have capitalization lined up?

26. Thank You!
Eric Bowman & Teresa Young
eric@nwcdc.coop | teresa@nwcdc.coop
Northwest Cooperative Development Center
1063 Capitol Way S # 211
Olympia, WA 98501
360.943.4241 | www.nwcdc.coop
Fostering community economic development through the
cooperative business model