New Construction

TCEC is a member-owned electric cooperative headquartered in Hooker, Oklahoma. Unlike many electric companies in other parts of the country, our members own the cooperative.

TCEC is a not-for-profit organization that strives to keep rates affordable while maintaining safe and reliable electric services for its member-owners. What this also means is that when TCEC accumulates funds in excess of what it needs to run the business, the excess funds (patronage capital) are returned to the member-owners at regular intervals approved by the Board of Trustees.

The cooperative model is a unique one and focuses, more than other business models, on creating real value for its member-owners and delivering the best service possible.

When a member wants to connect an electrical service to TCEC’s electrical distribution system where no connection currently exists, TCEC must add equipment to its electric system. This situation arises when a member is, for example, building a new house or a business is adding on to their facility.

When this happens, TCEC asks the member to contribute financially to adding the additional equipment needed to make this new connection. The request for the member to contribute to the expansion of the electrical system is called a ‘contribution to construction.’

Part of the cooperative business model is that members contribute equitably to the capital of their cooperative. The cooperative’s Rules and Regulations of Service outline the member’s and the cooperative’s relative financial contributions toward meeting the member’s request for additional service.

TCEC requests a contribution to construction when a member asks for a change to the electrical system that primarily benefits them and does not specifically benefit other members. Seen from the other members’ vantage point, it would not be fair to spread these costs among all members when the benefit accrues to only one member.

The cost of expanding the distribution system to accommodate the changing needs of a member may seem high but TCEC makes every effort to minimize the financial burden on the member requesting new service.

In the end, TCEC has the responsibility for building and maintaining the members’ electrical distribution system which is affordable, safe, and reliable. TCEC must also ensure that the electrical system meets cooperative and electric industry standards. Although the member’s contribution to construction may seem high sometimes, TCEC must build an electrical system that lasts over the long haul and can be efficiently and effectively maintained.

TCEC only charges for the cost of the project. There is no margin (profit) made on construction. If TCEC overestimates the cost the overage will be returned to the member.

Sometimes, when a member requests new additions to the electrical system to meet their growing needs, TCEC will determine that additional upgrades to the surrounding system are necessary to strengthen the system and/or to prepare the system for future planned growth. In these instances, these upgrades are always the responsibility of and paid for by TCEC.

While TCEC and its members own the electrical distribution system as a whole, no single member will ever privately own or control any portion of the TCEC distribution system even though individual members are requested to make a contribution to construction that benefits their own growing needs.

In the end, TCEC is responsible for maintaining the electrical distribution system so that it continues to be safe, reliable, and a treasured community asset.