Volunteer Energy Cooperative

What Volunteer Energy Cooperative does

Volunteer Energy Cooperative (VEC) is a non-profit, member-owned rural electric distribution cooperative headquartered in Decatur, Tennessee. Founded in 1935 as the Meigs County Power Association and the first electric cooperative in the United States to take advantage of Rural Electrification Administration funding, VEC purchases wholesale electricity from the Tennessee Valley Authority (TVA) and redistributes it to more than 115,900 members across all or parts of 17 Tennessee counties over 10,000+ miles of distribution line. Approximately 80 cents of every dollar collected flows through to TVA as a pass-through power cost; residual revenues are reinvested into the system rather than distributed to outside investors.

The cooperative's product portfolio is anchored on electric distribution and extended through natural gas service in select Polk County areas, broadband internet via the Twin Lakes Telephone Cooperative partnership (speeds up to 10 Gig), and TVA-sponsored solar programs including Dispersed Power Production and the Green Switch/Flex/Connect programs. Operational technology includes automated meter reading (AMR), SCADA remote substation monitoring, an outage management system, and the SmartHub member-facing platform for account management, outage reporting and payment processing. Supporting products cover prepaid billing (PayMyWay), 12-month levelized billing, Bank Draft autopay, heat-pump financing through EnergyRight, outdoor lighting, and right-of-way vegetation management.

VEC's business model is a subscription/usage-based cooperative: monthly customer charges plus volumetric kWh rates for residential and commercial classes, with gas billed per MCF and broadband billed on a recurring service basis. Member ownership and a 12-member elected board govern the cooperative democratically; community programs such as VECustomers Share (over $9.2M in grants since 2001), Project Deserve bill assistance, and youth leadership programs anchor member retention. Distribution occurs through nine physical customer service centers, phone/IVR, the SmartHub web and mobile app, and the Twin Lakes broadband channel for internet services.

Name

Volunteer Energy Cooperative

Legal name

Volunteer Energy Cooperative

Website

https://vec.org

Company type

Private

Founded year

1935

Operating status

Operating

Headcount range

101–250 employees

Short description

Volunteer Energy Cooperative is a non-profit, member-owned rural electric distribution cooperative serving 115,900+ members across 17 Tennessee counties via 10,000+ miles of line, also offering broadband, natural gas, and solar programs under a TVA wholesale-supplied cooperative model.

Ownership category

akta.pro rank

Product category

Rural Electric Utility Distribution

NAICS

Electric Power Generation, Transmission and Distribution (2211), Solar Electric Power Generation (221114)

SIC

Electric Services (4911), Electric, Gas & Sanitary Services (4900)

akta.pro primary industry

Electric Cooperatives (Rural/Member-Owned Utilities) (EUADABAC)

akta.pro secondary industries

Community Solar Development & Subscription Management (EUAMAJAA), Renewable Distributed Generation (Rooftop/Onsite Solar, Small Wind, Small Hydro) (EUACALAJ)

Keywords

• Rural electric cooperative
• Electric utility distribution
• Natural gas service
• Fiber broadband internet
• Member-owned energy services

Headquarters

HQ city

Decatur

HQ country

United States

HQ region

North America

Offices10 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Infrastructure, Technology or R&D, Supply Chain

Revenue model

1. Electric Distribution: VEC purchases electric power from Tennessee Valley Authority (TVA) at wholesale rates and distributes electricity to consumers. Over 80 cents of every dollar collected goes directly to TVA. The cooperative operates as a non-profit, returning excess revenues to members through system upgrades and maintenance rather than profit generation.
2. Broadband Services: High-speed internet service through Twin Lakes partnership offering speeds up to 10 Gig (10,000 Mbps), voice service, TV offering, and home security monitoring.
3. Natural Gas Service: Natural gas service offered in selected areas of Polk County through Volunteer Energy Natural Gas subsidiary. Rates include customer charge and billed rate per MCF.
4. TVA Fuel Cost Adjustment: Pass-through charge from TVA for fuel costs (nuclear, coal, oil, natural gas). VEC does not receive any FCA charges; funds collected go directly to TVA.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

Volunteer Energy Cooperative (VEC) is a non-profit, member-owned electric cooperative that purchases wholesale power from the Tennessee Valley Authority (TVA) and distributes electricity across 17 Tennessee counties via more than 10,000 miles of power lines serving 115,900+ members. The cooperative also delivers fiber broadband internet through a partnership with Twin Lakes Telephone Cooperative and natural gas service in selected areas of Polk County, supported by solar programs, outdoor lighting, and member account tools.

Product overview

Volunteer Energy Cooperative offers a diversified portfolio of utility and community services organized around its core electricity distribution business. The company's primary offerings include electric service (residential and commercial) across 17 Tennessee counties, broadband internet via the Twin Lakes partnership, natural gas service, and solar programs through TVA. Supporting products include SmartHub for account management, PayMyWay prepaid billing, Levelized Billing, Bank Draft, and Heat Pump Financing. Community programs include Project Deserve (bill assistance), VECustomers Share (community grants), and Youth Programs (scholarships and leadership). The cooperative operates under a non-profit model, returning excess revenues to the system through upgrades and maintenance.

Differentiator

Problem solved

Functional benefit

Products and services

• Electric Service

Quantifiable outcome

• Over 115,900 members served across 17 Tennessee counties with over 10,000 miles of power lines
• +2 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Five partnerships are on record, tiered core and supporting.

• Twin Lakes Telephone CooperativecoreStrategic or Co-development Partner · 1 January 2017VEC partnered with Twin Lakes Telephone Cooperative to launch a broadband fiber-to-the-home pilot program, extending high-speed internet to unserved rural communities. The partnership leverages VEC's existing infrastructure and service territory with Twin Lakes' telecommunications expertise to deliver internet speeds up to 10 Gig. VEC has been awarded seven grants totaling over $13.6 million to support fiber optic network construction across Meigs, Hamilton, McMinn, and other counties. Over 2,000 homes/businesses have gained access to high-speed broadband through this initiative.
• Tennessee Valley Authority (TVA)coreOthers · 1 January 1935VEC purchases all electric power from TVA at wholesale rates and distributes it to consumers. The cooperative entered into a contract with TVA in 1939. TVA provides the fuel cost adjustment pass-through on member bills. VEC participates in TVA programs including EnergyRight, Valley Incentive Programs, and renewable energy options (Green Switch, Green Flex, Green Connect, Dispersed Power Production).
• USDA Rural DevelopmentcoreStrategic or Co-development PartnerVEC participates in USDA Rural Development programs to provide rural economic development loans for job creation projects. The cooperative operates as an intermediary, receiving loans from USDA and re-lending to third-party borrowers to promote rural economic development and job creation in underserved communities.
• Tennessee Department of Economic and Community DevelopmentsupportingStrategic or Co-development PartnerVEC works with the Tennessee Department of Economic and Community Development along with TVA and USDA Rural Development to ensure businesses in VEC's service area remain competitive through economic development programs and business retention initiatives.
• TVA EnergyRightsupportingStrategic or Co-development PartnerPartnership with TVA EnergyRight program providing homeowners with energy efficiency programs including home energy evaluations, qualified contractor networks, heat pump financing at 8% interest for up to 10 years, and energy workshops for adults and children.

Scale indicators6 records

Recent moves10 records

Expansion highlights6 records

Direct peers

• Sequachee Valley Electric Cooperative: Tennessee electric cooperative serving southeast Tennessee counties that overlap with portions of VEC's territory. Highly comparable as a TVA-powered rural electric cooperative with similar member services and broadband expansion efforts.
• Middle Tennessee Electric Membership Corporation: Largest electric cooperative in Tennessee serving multiple counties around the Nashville metro area. Direct comparable to VEC as a member-owned electric distribution cooperative purchasing wholesale power from TVA, with similar service portfolio and customer structure.
• Duck River Electric Membership Corporation: Tennessee-based rural electric cooperative serving south-central Tennessee counties. Operates the same TVA wholesale/distribution model with member-owned governance, making it a near-direct functional and structural peer to VEC.
• Plateau Electric Cooperative: Tennessee electric cooperative serving Cumberland Plateau region including portions of VEC-adjacent counties. Directly comparable as a TVA-distributor electric cooperative with similar rural member base and service territory characteristics.
• Caney Fork Electric Cooperative: Tennessee electric cooperative serving the upper Cumberland region. Operates the same cooperative model with TVA wholesale supply, providing a directly comparable peer for VEC's electric distribution and member services structure.
• Fort Loudoun Electric Cooperative: East Tennessee electric cooperative serving Loudon and surrounding counties, including areas adjacent to VEC's service territory. Directly comparable peer operating the same cooperative model with TVA wholesale supply.
• Powell Valley Electric Cooperative: Electric cooperative serving Tennessee-Virginia border region with member-owned structure and TVA power supply. Comparable to VEC in rural Appalachian service territory, member governance, and electric distribution business model.
• Holston Electric Cooperative: Northeast Tennessee electric cooperative serving a multi-county rural territory. Operates under identical TVA cooperative distribution model as VEC, providing strong operational and structural comparability.

Others

• Tennessee Electric Cooperative Association: Statewide trade association representing Tennessee's electric cooperatives including VEC. Relevant as an industry association peer that coordinates shared services, legislative advocacy, and the Tennessee Magazine publication that VEC uses for member communications.

Regional players

• Southwest Tennessee Electric Membership Corporation: Tennessee electric cooperative serving the southwestern part of the state with member-owned structure and TVA power supply. Comparable as a Tennessee rural electric cooperative though operating in a separate non-overlapping region of the state.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/VEC_TN
• Facebookfacebook.com/volunteerenergycoop
• Instagraminstagram.com/volunteerenergycoop

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries2 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Volunteer Energy Cooperative