Somerset Rural Electric Cooperative

What Somerset Rural Electric Cooperative does

Somerset Rural Electric Cooperative (Somerset REC) is a member-owned, nonprofit rural electric distribution cooperative serving 13,840 residential and commercial members across four Pennsylvania counties (Bedford, Fayette, Somerset, Westmoreland) and Garrett County, Maryland. The cooperative operates 1,831 miles of electric distribution line, has been continuously energized since 1940, and employs 42 people at its headquarters in Somerset, Pennsylvania. Its core business is delivering electricity under three rate tiers: Residential Service (basic service charge plus tiered energy charges), Large Power Service (demand-based billing for commercial and industrial customers), and Primary Metering Service (high-voltage commercial and industrial supply at primary distribution voltage). All generation and transmission costs are passed through based on wholesale rates from Allegheny Electric Cooperative, Inc.

The cooperative's operational technology centers on the SmartHub platform, a mobile and web-based member self-service portal for bill payment, monthly usage monitoring, outage reporting, and account management. SmartHub is available via web and native apps on Apple App Store and Google Play Store. Beyond electricity delivery, Somerset REC offers complementary programs including Solar Interconnection for distributed generation, Load Management for demand optimization, Levelized Billing for budget stability, HVAC services (heat pumps, electric thermal storage units, electric boilers), water heater services, and Touchstone Energy Savings efficiency programs. Community engagement is delivered through Youth Tour, Scholarships, and REC in the Community programs.

Somerset REC's business model is a traditional subscription-based, usage-based utility model: members pay monthly basic service charges plus per-kWh energy charges, with commercial and industrial customers adding demand charges. The cooperative is structured under member ownership with one-member-one-vote governance, capital credits returned to members, and partnerships with NRECA (advocacy) and Touchstone Energy Cooperatives (national brand alliance). Revenue is not publicly disclosed. A rate increase effective January 1, 2026 adjusts pricing across all three rate tiers to reflect rising wholesale generation, transmission, and PJM-related capacity costs.

Name

Somerset Rural Electric Cooperative

Legal name

Somerset Rural Electric Cooperative, Inc.

Website

https://somersetrec.com

Company type

Private

Founded year

1940

Operating status

Operating

Headcount range

11–50 employees

Short description

Somerset Rural Electric Cooperative is a member-owned nonprofit rural electric utility serving 13,840 residential and commercial members across five counties in Pennsylvania and Maryland, operating 1,831 miles of distribution line and 42 employees, with electricity delivery complemented by SmartHub digital services and solar, load management, and HVAC programs.

Ownership category

akta.pro rank

Product category

Rural Electric Distribution Utility

NAICS

Electric Power Transmission, Control, and Distribution (22112)

SIC

Electric Services (4911)

akta.pro primary industry

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

Keywords

• Rural electric distribution
• Member-owned cooperative
• Residential electric service
• Commercial power service
• Utility bill management

Headquarters

HQ city

Somerset

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Supply Chain, Infrastructure, Personnel, Operations, Others

Revenue model

1. Electric Distribution Services: Member-owned cooperative providing electricity distribution services to residential and commercial members. Revenue generated through monthly basic service charges and per-kilowatt-hour charges for electricity consumption across multiple rate schedules including Residential, Large Power, and Primary Metering options.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

Somerset REC distributes electricity to residential, commercial, and industrial members across five rural counties in Pennsylvania and Maryland via three rate schedules (Residential Service, Large Power Service, Primary Metering Service). Revenue is generated through monthly basic service charges plus per-kilowatt-hour energy charges, including generation and transmission pass-through components from wholesale supplier Allegheny Electric Cooperative. Members access account services through the SmartHub web portal and mobile app.

Product overview

Somerset Rural Electric Cooperative is a member-owned rural electric utility cooperative serving 13,840 members across four Pennsylvania counties (Bedford, Fayette, Somerset, Westmoreland) and Garrett County, Maryland. The cooperative operates a single integrated electricity distribution network with approximately 1,831 miles of power lines, energized since 1940. The core offerings center on electricity delivery across three rate tiers: Residential Service for standard household needs, Large Power Service for commercial/industrial customers with demand-based pricing, and Primary Metering Service for high-volume users at primary voltage. The Smarthub mobile and web platform serves as the primary digital interface for account management, bill payment, and outage reporting. Beyond basic electricity delivery, the cooperative offers complementary programs including Levelized Billing for budget stability, Solar Interconnection for distributed generation, Load Management for demand optimization, Touchstone Energy Savings for efficiency, HVAC services (heat pumps, electric boilers), water heater services, Youth Tour educational travel, and scholarship programs. These programs function as integrated components within the cooperative's member service ecosystem rather than standalone products.

Differentiator

Problem solved

Functional benefit

Products and services

• Residential Electric Service Standard electricity distribution service for residential and domestic uses, including water heating and space heating applications. Includes monthly basic service charge plus per-kWh energy charges and generation/transmission pass-through component.
• Large Power Service Commercial and industrial electric service for businesses with higher demand requirements, featuring demand-based pricing with monthly basic service charge, per-kW demand charge, kvar charge, and tiered energy charges.
• Primary Metering Service Electric service for commercial and industrial consumers taking power at the cooperative's primary distribution voltage, with CP billing demand charges, excess demand charges, kvar charges, and tiered energy charges. Generation and transmission rates increase during PJM peak periods.

Named customers2 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Three partnerships are on record, tiered core.

• NRECA (National Rural Electric Cooperative Association)coreOthersNational organization representing America's cooperative electric utilities. Somerset REC is affiliated with NRECA which provides advocacy, information, and services to advance the interests of electric cooperatives nationwide.
• Touchstone Energy CooperativescoreStrategic or Co-development PartnerNational brand alliance of electric cooperatives providing marketing support, energy efficiency programs, and cooperative identity. Somerset REC participates in Touchstone Energy Savings programs and the Dolly Parton Imagination Library sponsorship.
• Allegheny Electric Cooperative, Inc.coreOthersWholesale power supplier that determines Somerset REC's generation and transmission rates. The CP (Coincident Peak) billing demand is based on Allegheny Electric's wholesale billing demand pursuant to their effective wholesale rate schedule.

Scale indicators4 records

Recent moves5 records

Expansion highlights4 records

Direct peers

• Adams Electric Cooperative: Pennsylvania-based rural electric distribution cooperative serving residential, commercial, and agricultural members across a similar multi-county territory with comparable cooperative governance.
• REA Energy Cooperative: Member-owned rural electric cooperative serving western Pennsylvania counties with parallel offerings including residential service, large power rates, and member-focused energy programs.
• Valley Rural Electric Cooperative: Member-owned rural electric distribution cooperative serving central Pennsylvania with similar residential, commercial, and industrial rate structures and NRECA/Touchstone Energy affiliations.
• Sullivan County Rural Electric Cooperative: Pennsylvania rural electric cooperative serving residential and commercial members with comparable demand-based billing tiers and Touchstone Energy branding.
• Central Electric Cooperative: Pennsylvania-based electric distribution cooperative operating under the same NRECA framework with comparable rate classifications and capital credit returns to members.
• Tri-County Electric Cooperative (PA): Pennsylvania rural electric cooperative providing distribution services to residential farms and commercial members across rural territory, comparable in scale and member-owned structure.

Broad incumbents

• Allegheny Electric Cooperative: Wholesale generation and transmission cooperative that supplies Somerset REC's power and sets its G&T rates. Comparable as a Pennsylvania-based electric cooperative operating in the same regulatory ecosystem under NRECA.
• PPL Electric Utilities: Investor-owned electric distribution utility serving much of Pennsylvania including areas adjacent to Somerset REC's territory. Comparable as a regulated distribution operator but with significantly larger scale and IOU capital structure.
• West Penn Power (FirstEnergy): Investor-owned electric distribution utility operating in southwestern Pennsylvania counties that overlap with Somerset REC's service territory. Comparable as a regulated electric distribution provider serving the same regional geography.

Others

• Touchstone Energy Cooperatives: National cooperative brand alliance of which Somerset REC is a member. Comparable as the strategic marketing and energy efficiency partnership that supports Somerset REC's programs and identity.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/recsomerset

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

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 Somerset Rural Electric Cooperative