Federated Rural Electric

What Federated Rural Electric does

Federated Rural Electric Association is a member-owned, not-for-profit electric distribution cooperative founded on December 17, 1935, serving approximately 1,143 member-owners across 5,300+ electric accounts in Jackson and Martin Counties, Minnesota, with limited coverage in bordering counties and Huntington, Iowa. The cooperative distributes electricity through 251 miles of overhead and 157 miles of underground lines, sourcing power from Great River Energy (wholesale contract extended to 2045), Western Area Power Administration (hydropower, ~11% of supply since 1954), and L&O/Basin Electric Power Cooperative. As a 2026 base rate of $29.50 plus $0.1145/kWh is being implemented, supplemented by a residential time-of-use EV rate ranging from $0.0563 to $0.1243/kWh and a 2.1 MW Welcome Wind Turbine generating over 5.6 million kWh annually. Operations include an Outage Management System, AMR metering, and two-way radio load control.

Beyond core electricity distribution, the cooperative operates Federated Broadband (fiber and fixed wireless internet expanded via $15M in USDA grants in 2023-2024 for 937 households), CTV (50-channel television at $8/month broadcast from towers at Godahl, Frost, and Jackson), and Heartland Security (co-owned with 12 other co-ops, serving 8,000+ families). The cooperative sells electric water heaters ($750 plus installation), LED bulbs, electric grills, and security lights, and offers rebates for Energy Star appliances, heat pumps, and EV chargers. All margins are returned to members as capital credits, with approximately $7.9 million returned over the past decade. Governance is by a seven-member elected Board of Directors, and the cooperative participates in the Touchstone Energy national alliance of 700+ cooperatives.

Name

Federated Rural Electric

Legal name

Federated Rural Electric Association

Website

https://federatedrea.coop

Company type

Private

Founded year

1935

Operating status

Operating

Headcount range

11–50 employees

Short description

Federated Rural Electric Association is a member-owned electric distribution cooperative founded in 1935, serving 1,143 members and 5,300+ accounts across Jackson and Martin Counties, Minnesota, with bundled broadband, television, and security services.

Ownership category

akta.pro rank

Product category

Rural Electric Distribution and Broadband Services

NAICS

Electric Power Distribution (221122), Electric Power Generation, Transmission and Distribution (2211)

SIC

Electric Services (4911), Electric & Other Services Combined (4931)

akta.pro primary industry

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

akta.pro secondary industries

Rural Broadband & Cooperative Fiber Operators (HDAIACAG), Electric Distribution System Owners (Wires-Only Companies) (EUADABAI)

Keywords

• Rural electric distribution
• Fiber broadband internet
• Electric cooperative services
• Home security monitoring
• Digital television service

Headquarters

HQ city

Jackson

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Supply Chain, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Electric Distribution Service: Federated Rural Electric operates as a not-for-profit cooperative. All revenues above expenses (margins) are returned to members in the form of capital credits. The cooperative returned approximately $7.9 million in capital credits during the last decade. Revenue comes from electricity distribution fees including base charges and per kWh charges.
2. Water Heater Sales and Installation: Members can purchase stainless steel electric water heaters for $750 plus tax. Installation service available. Units must be enrolled in load control program.
3. CTV Television Service: Basic television broadcasting service at $8/month providing approximately 50 channels through UHF towers at Godahl, Frost, and Jackson. Annual nonmember subscription $96/year, seasonal $48/year.
4. Security Light Rental: Rental of LED security lights at $6.55/month with free maintenance if connected ahead of meter. One-time $70 installation fee for new lights.
5. Heartland Security Services: Federated co-owns Heartland Security with 12 other cooperatives. Security system installation and monitoring services for homes and businesses with special member discounts.
6. Federated Broadband: Broadband internet service being expanded through fiber installation. Received $7 million grant for 480 households in Jackson County (2024-25) and $8 million grant for 457 households in Martin County (2025-26).

Pricing tiers

Go-to-market motion1 record

Distribution channels7 records

Marketing channels7 records

Core offering

Federated Rural Electric is a member-owned, not-for-profit electric distribution cooperative that delivers electricity to residential, farm, commercial, and industrial accounts in its Jackson and Martin County service territory. Beyond electricity, the cooperative sells fiber-based gigabit broadband internet (FiberFast), digital television, and 24/7 monitored home security services, while also installing standby generators, floor warming systems, and other electrical contracting services. Any account holder in the service territory may join as a member/owner with a $25 fee, entitling them to voting rights and patronage capital refunds.

Product overview

Federated Rural Electric is a member-owned electric cooperative serving Jackson and Martin Counties in Minnesota, offering a bundled portfolio of utility and supplementary services. The core product is electricity distribution, supplemented by subsidiaries Federated Broadband (internet), CTV (television), and Heartland Security (security systems). Additional offerings include consumer products (electric grills, LED bulbs, water heaters), energy efficiency programs (rebates, load management), billing services (paperless payments, capital credits), community programs (Operation Round Up, scholarships), and economic development loans. The cooperative operates as a not-for-profit entity with approximately 1,143 members, 251 miles of overhead lines, and 157 miles of underground lines.

Differentiator

Problem solved

Functional benefit

Brands

• Co-op Connections: A free membership program for electric cooperative members offering discounts on health and wellness, travel, entertainment, safety, security, local deals, national discounts, and insurance.
• Heartland Security
• Carr's Tree Trimming Service

Products and services

• Electric Service (Residential, Farm, Commercial & Industrial) Core electricity distribution service for residential, farm, commercial, and industrial accounts across Jackson and Martin Counties. Includes separate rate classes for each class, optional dual-fuel load management program, and a $25 one-time membership fee that grants member-owner status with voting rights and patronage capital refunds.
• FiberFast Broadband Internet Subscription-based fiber-optic broadband internet service delivering gigabit-capable speeds to members within the cooperative's service territory. Targeted at rural residential and business users who otherwise lack high-speed connectivity.
• Digital Television Service Subscription-based digital TV service delivered over the cooperative's fiber network to residential and business members, offering channel packages with associated pricing.
• Home Security Monitoring 24/7 monitored home and business security alarm service available to cooperative members, leveraging alarm equipment installed by the cooperative and a continuous central monitoring operation.
• Standby Generator Sales and Installation Sale, service, and installation of diesel and LP standby generators for residential, farm, and commercial members who require backup power.
• Floor Warming Systems Sale and installation of electric underground heat cable floor warming systems for residential and commercial floors.
• Energy Audit and Energy-Efficient Equipment Energy audit services and sale of energy-efficient electric equipment to help members reduce consumption and lower bills, supplemented by cooperative rebate programs.
• Cooperative Membership ($25 Member-Owner) One-time $25 membership that grants electric account holders the rights of cooperative ownership, including voting in board elections, access to patronage capital refunds, and eligibility for Co-op Connections discounts.

Named customers6 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

13 partnerships are on record, tiered core, minor and flagship.

• Great River EnergycoreStrategic or Co-development PartnerOne of Federated's wholesale power suppliers. In 1999, Cooperative Power and United Power Association consolidated becoming Great River Energy. Extended wholesale power contract with Great River Energy until 2045. Federated receives significant portion of electricity supply through this partnership.
• Western Area Power Administration (WAPA)coreStrategic or Co-development PartnerFederated receives hydropower allocation through Pick-Sloan Missouri Basin Program - Eastern Division. Initial allotment received July 1, 1954. WAPA provides approximately 11% of energy supply from hydroelectric power plants along the Missouri River Basin.
• L&O/Basin Electric Power CooperativecoreStrategic or Co-development PartnerThird power supplier added November 1, 2008. L&O Power Cooperative provides electricity and administers revolving loan fund up to $80,000 for economic development projects.
• Alliant EnergyminorStrategic or Co-development PartnerWholesale power supplier to Federated. Territory purchased from Alliant in May 2015 as part of Southern Minnesota Energy Cooperative (SMEC) acquisition.
• Touchstone Energy CooperativesflagshipGTM or Marketing PartnerNationwide alliance of 700+ local, member-owned electric cooperatives in 46 states. Federated joined in March 1998 along with nearly 500 other cooperatives. Touchstone Energy is the national brand identity representing electric cooperative network.
• Heartland Security ServicesflagshipStrategic or Co-development PartnerCo-owned by Federated and 12 other rural electric cooperatives in central, western, and southern Minnesota and northern Iowa. Founded March 1999. Protects more than 8,000 families and businesses. Federated provides customer access and marketing through its member base.
• Cooperative Television of Southern Minnesota (CTV)coreStrategic or Co-development PartnerFormed October 1992 by Federated and three co-ops (Brown County REA, South Central Electric, Nobles Cooperative Electric) to operate Godahl Tower and provide low-cost television service. CTV provides approximately 50 channels at $8/month compared to $70+/month satellite costs.
• Cooperative Alliance Partners (CAP)coreStrategic or Co-development PartnerFour neighboring electric cooperatives (Brown County REA, Sleepy Eye; Federated; Nobles Cooperative Electric, Worthington; South Central Electric Association, St. James) working together to serve members more efficiently and cost-effectively. Formed January 1996.
• Karian-PetersonminorStrategic or Co-development PartnerPower line construction contractor co-owned by Federated and six other electric cooperatives since June 2000.
• Carr's Tree Trimming ServicecoreStrategic or Co-development PartnerSubsidiary of Federated and six other cooperatives providing tree trimming services for power line maintenance. Works six months per year on Federated's system. Keeps trees trimmed to prevent outages and blinking lights.
• Co-op ConnectionsminorGTM or Marketing PartnerNational cooperative benefit program providing members with discounts on health, wellness, travel, entertainment, safety, security, local deals, national discounts, and insurance. Touchstone Energy branded savings card introduced September 2011.
• Southern Minnesota Energy Cooperative (SMEC)coreStrategic or Co-development PartnerPartnership of cooperatives including Federated that purchased Alliant territory in May 2015. Added 1,700 member-owners and towns of Heron Lake, Okabena, Sherburn, Northrop, Granada to service territory.
• Gopher State One-Call (GSOC)minorOthersNonprofit statewide utility notification center for excavation projects in Minnesota. Federated participates to locate underground lines before digging projects, as required by state law for excavations 24 inches or deeper.

Scale indicators7 records

Recent moves11 records

Expansion highlights6 records

Broad incumbents

• Alliant Energy: Investor-owned utility that previously owned the Alliant territory Federated and SMEC partners acquired in 2015; comparable in scale and rural Midwestern customer mix but investor-owned rather than cooperative.
• Great River Energy: Wholesale power supplier to Federated under a contract running to 2045 and one of the largest generation-and-transmission cooperatives in the Upper Midwest; comparable cooperative structure but generation/transmission focus rather than distribution.
• Xcel Energy: Investor-owned utility serving Minnesota and adjacent states; while Federated's service territory is exclusive of Xcel, Xcel provides the regulatory and retail rate benchmark against which cooperative rates are compared.

Direct peers

• Brown County Rural Electric Association: Direct peer neighbor; rural electric cooperative based in Sleepy Eye, MN, and partner in both the CAP alliance and the CTV television cooperative. Highly comparable service profile and customer base.
• BENCO Electric Cooperative: Direct peer through CTV television partnership; rural electric cooperative operating in southern Minnesota with comparable member-cooperative structure and bundled broadband/security offerings.
• Itasca-Mantrap Cooperative Electric Association: Minnesota rural electric cooperative serving Itasca and adjacent counties; comparable in operating model, scale, and reliance on Touchstone Energy membership and Touchstone-aligned service offerings.
• Goodhue County Cooperative Electric Association: Minnesota-based rural electric cooperative of similar size and structure serving Goodhue County; mirrors Federated's member-owned distribution utility plus diversified subsidiary model.
• Steele-Waseca Cooperative Electric: Southern Minnesota rural electric cooperative of similar scale; directly comparable distribution utility with member-cooperative governance, load management, and broadband rollouts.
• Nobles Cooperative Electric: Direct peer neighbor; fellow Minnesota rural electric cooperative headquartered in Worthington and a member of Cooperative Alliance Partners (CAP) with Federated. Shares operational structure, scale, and member-cooperative business model.
• South Central Electric Association: Direct peer neighbor; rural electric cooperative based in St. James, MN, co-founder of CAP and CTV alongside Federated. Operates under identical cooperative framework in adjacent southern Minnesota territory.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• Facebookfacebook.com/federated
• LinkedInlinkedin.com/company/federated-rural-electric-association

Revenue estimate

Valuation estimate

Number of profiles

Profiles18 records

Subsidiaries4 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 Federated Rural Electric