(September 22, 2015)
Currently in its pilot stage, a project designed to promote financial literacy in communities served by electric cooperatives while building credit union membership is gaining momentum and generating enthusiasm among co-op sector leaders.
Called Operation Connect, the project brings together credit unions and rural electric co-ops operating in the same geographic location to promote financial literacy, budgeting skills and long-term financial planning for the 42 million electric co-op members nationwide.
“A small but significant portion of these members experience difficulty in meeting their payments, often due to a lack of financial literacy in budgeting their financial obligations,” said project architect Adam Schwartz, an U.S. Co-ops senior consultant for Domestic Operations and founder of The Cooperative Way. “The payment collection process, disconnect and reconnect of electricity is costly for both consumers and electric co-ops,” he added.
“If we can intercede to end this cycle, we can improve quality of life for electric co-op members while also growing the number of credit union members,” Schwartz said.
In Virginia, the Fort Lee Federal Credit Union and Prince George Electric Co-op have already partnered to offer financial literacy seminars paired with easy, low-cost home improvement ideas to help lower monthly household energy costs. There are several other potential cross-sector partnerships in Georgia, South Carolina, North Carolina, Colorado and Minnesota, Schwartz said.
U.S. Co-ops is working with its project development partners, including the CUNA Cooperative Alliance Committee, and the National Credit Union Foundation to create a toolkit that credit unions and electric co-ops can use to expedite the rollout of Operation Connect nationwide.
Pat Sterner, U.S. Co-ops COO for Domestic Operations, said cross-sector efforts, such as Operation Connect, are a priority for U.S. Co-ops. “We are thrilled to launch a project that puts Principle 6—cooperation among cooperatives—in action while building financial independence and energy efficiency in communities across the U.S.,” she said.
U.S. Co-ops anticipates a full launch of Operation Connect in 2016, Sterner said.