Iowa’s electric cooperatives have significantly affected the Iowa economy, positively impacting each of Iowa’s 99 counties. A new study shows electric cooperatives generated about $1.1 billion of output into Iowa’s economy during 2007. This is up 23 percent from 2003, and represents the growth that occurred in Iowa’s Gross Domestic Product, just from Iowa’s rural electric cooperatives.
The findings are the outcome of a study of the economic impact Iowa’s rural electric cooperatives have on community and business development programs, charitable donations, community investments and volunteer activities.
The survey was conducted by the Iowa Association of Electric Cooperatives (IAEC) in partnership with Iowa Area Development Group (IADG), the business and community development office for Iowa’s rural electric cooperatives. Strategic Economics Group consisting of Dr. Harvey Siegelman and Dr. Daniel Otto conducted the economic impact analysis. Siegelman served as Iowa’s state economist for 20 years and Otto is a professor of economics at Iowa State University.
“Contributing to the growth and development of the Iowa economy by helping local communities and businesses is an operating principal for Iowa’s electric cooperatives,” said Brian Kading, executive vice president of IAEC. “We have strength in numbers and work together to grow and develop the regions we serve.”
Iowa’s rural electric cooperatives have invested in their communities, contributing over $17 million statewide to support business and community development programs. Collectively Iowa’s electric cooperatives racked up some astounding statistics in 2007:
· Managed a $679 million electric utility business that employs 6,900 people and generated $176 million in local income.
· Leveraged $6.8 million in grants and loans for a $220 million impact on local business investment.
· Provided financial and technical support for 44 wind turbines in their local areas with a capacity to generate 38 megawatts of power. Regionally, Iowa’s rural electric cooperatives provided economic support for 350 megawatts of power.
· Invested $11.7 million in energy efficiency programs and services and saved member-consumers more than $18 million.
Rand Fisher, President of Iowa Area Development Group stated, “IADG is proud to provide economic development leadership on behalf of our rural electric cooperative sponsors. The commitment by Iowa’s RECs to the economic future of this state is well documented in the report. Even more importantly that same dedication and commitment to community is demonstrated each day in our member systems’ service territories.”
A copy of the impact study is available electronically on the hotlink provided or in print by contacting the IADG office at 515-223-4817.
