srem group 10 28 10
DESCRIPTION
Seattle Renewable Energy Meet-up Oct. 2010TRANSCRIPT
NW Co-op Development Center
Seattle Renewable Energy Meet-up GroupOct. 28th, 2010
Eric Bowman, Cooperative Development [email protected]
Teresa Young, Organizational Development [email protected]
1063 S Capitol Way # 211Olympia, WA 98501
360.943.4241
Presentation Overview
1. Intro
2. Co-ops 101 and Overview
3. Models– Consumer– Community Solar– Worker
1. Q&A
NWCDCThe 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’rea team of co-op developers with skills specific to start-up and organizational business development
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!
Co-ops 101
Investor owned:
Sole proprietor:
Co-ops are member:◦ Owned◦ Benefited◦ Controlled
Ownership
Member-Owners can be
– Consumers– Producers/Farmers– Workers– Other Businesses
Distributionism
Consumer◦ Credit Unions◦ Housing◦ Retail (e.g. food co-ops)◦ Farm Supply
Two Schools
Producer◦ Worker◦ Farmer◦ Artisan◦ Business
Why Cooperate?…to access resources not individually achievable
Marketable Co-op Benefits; “Goodwill”• Keep profits, ownership and control local • Accountable• Trusted
Relationships and Authority
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
Consumer Models
Consumers aggregate to:• Bulk buy• Govern management• Keep margins low
Models:• Housing• Credit unions• Food co-ops
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
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
Assn negotiates fuel for timber harvesters, haulers, etc.
Up to $.25 per gal savings!
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”
Co-op Owned InfrastructureBaywind 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.
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
What is a Worker Cooperative?
•Worker Owned •Worker Controlled
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
Arizmendi Bakery
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
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
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…
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?
More Questions
• What kind of organizational/management structure?
• Do you have capitalization lined up?
Thank You!
Eric Bowman & Teresa [email protected] | [email protected]
Northwest Cooperative Development Center1063 Capitol Way S # 211 Olympia, WA 98501
360.943.4241 | www.nwcdc.coop
Fostering community economic development through the cooperative business model