People's Energy Cooperative

What People's Energy Cooperative does

People's Energy Cooperative (PEC) is a member-owned, not-for-profit electric distribution cooperative serving more than 20,000 members across Southeast Minnesota. Founded in 1936 as People's Cooperative Association of Olmsted County and headquartered in Oronoco, PEC distributes electricity through approximately 2,900-3,000 miles of line and 28 substations, purchasing wholesale power from Dairyland Power Cooperative, a generation-and-transmission cooperative it joined in 1955. The cooperative's customer base is segmented across residential, commercial/industrial, and agricultural members, with economic development functions supporting local business growth, including a recently announced role as power provider for the Project Skyway data center development in Pine Island.

PEC's core product is electricity distribution, augmented by a portfolio of member-facing services including the SmartHub account management platform, People's Community Solar (an 820-panel community solar array), Energize Your Drive EV charging, energy audits, rebates, and an Energy Efficiency Center. Underlying technology includes Advanced Metering Infrastructure rolled out beginning in 2016, an Outage Management System dating to the 1990s, digital mapping transitioned from paper around 2008, and a digital radio system upgraded in 1999. Value-added partner services include Heartland Security, HomeServe home repair, and Viasat Internet. The cooperative also operates community programs such as Operation Round Up, Capital Credits, and the Care for Community Initiative.

PEC operates as a regulated distribution utility with exclusive service territory rights, earning revenue through electric service rates charged to members. Rates are not publicly disclosed; a 2.5 percent increase was implemented in 2025 to fund infrastructure investment. Nearly $30 million of purchased power expense in 2024 represented about 60 percent of operating expenses, with demand charges accounting for slightly over half of that figure. The cooperative is governed by a member-elected Board of Directors, with no parent company, no outside equity investors, and funding sourced from member revenue, revenue bonds, and Rural Utility Service loans. Total assets reached $205.3 million at the end of 2025, and a planned CEO succession from Mike Henke to Gwen Stevens takes effect at the close of 2025.

Name

People's Energy Cooperative

Legal name

People's Energy Cooperative

Website

https://peoplesenergy.coop

Company type

Private

Founded year

1935

Operating status

Operating

Headcount range

101–250 employees

Short description

People's Energy Cooperative is a member-owned, not-for-profit electric distribution cooperative serving over 20,000 residential, commercial, and agricultural members across Southeast Minnesota through roughly 2,900-3,000 miles of distribution line and 28 substations, with community solar, EV charging, and energy efficiency programs.

Ownership category

akta.pro rank

Product category

Electric Distribution Utility Services

NAICS

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

SIC

Electric Services (4911)

akta.pro primary industry

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

akta.pro secondary industries

Electric Distribution System Owners (Wires-Only Companies) (EUADABAI), Distributed Generation (DG) Solar & Small Wind (EUAMAJAD)

Keywords

• Electric distribution services
• Rural electric cooperative
• Member-owned utility
• Community solar programs
• Energy efficiency rebates

Headquarters

HQ city

Oronoco

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

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

Revenue model

1. Electric Service Revenue: As a not-for-profit electric cooperative, PEC generates revenue through electric service rates charged to members. Revenue is used to cover operating expenses, maintain infrastructure, and provide capital credits to members.

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels7 records

Core offering

People's Energy Cooperative distributes electricity to 20,000+ member-owners across Southeast Minnesota via 2,900-3,000 miles of line and 28 substations, sourcing wholesale power from Dairyland Power Cooperative. The cooperative bundles this core electric distribution service with member-account management via SmartHub, community solar access, energy-efficiency programs and rebates, EV charging incentives, and partner services such as security monitoring, home repair plans, and satellite internet.

Product overview

People's Energy Cooperative is a member-owned electric utility that provides electricity distribution services to Southeast Minnesota. The core offering is electric service delivery through a distribution network serving over 20,000 members. The Cooperative's product portfolio centers on SmartHub, a secure account management platform for online bill payment and account access. Key add-on services include People's Community Solar (community solar program), Energize Your Drive Charging (EV charging infrastructure), Outdoor LED Lighting, Energy Audits, and the Energy Efficiency Center (online resource hub with tips and rebates). The Cooperative also offers member programs including Operation Round Up (community grants), Capital Credits (member refunds), and Co-op Connections (discount program). Value-added partner services include Heartland Security, HomeServe home repair plans, and Viasat Internet. The Power Down voluntary load reduction program helps manage demand and stabilize rates. All services are designed to serve the cooperative's mission of providing reliable, affordable electricity to member-owners.

Differentiator

Problem solved

Functional benefit

Brands

• People's Community Solar: Community solar program established in 2017 in Elgin Industrial Park, providing members opportunity to access solar power without installing individual arrays
• SmartHub
• Power Down
• Operation Round Up
• Care for Community Initiative
• Energy Explorers' Club

Products and services

• Electric Distribution Service Core electricity distribution service providing power to homes, farms, and businesses across 2,900-3,000 miles of line and 28 substations in Southeast Minnesota.
• SmartHub Secure online and mobile account management platform enabling members to manage their electric accounts, view bills, make payments, and access usage information.
• Power Down Voluntary Load Reduction Program Voluntary load-reduction program that alerts members during peak energy events to reduce electricity usage, helping reduce demand charges and maintain stable rates; no credit or charge is applied to bills for participation.
• People's Community Solar Community solar program with an 820-panel solar array enabling members to access solar power without installing their own systems.
• Energize Your Drive EV Charging Electric vehicle charging program providing charging infrastructure and incentives for EV adoption among members.
• Outdoor LED Lighting Outdoor LED lighting service for streets, parking lots, and other outdoor areas, offering energy-efficient lighting solutions for members.
• Energy Audits Home energy assessment services to help members identify opportunities for energy savings and efficiency improvements.
• Energy Management Programs and Rebates Programs including rebates and demand-side management tools to help members reduce energy consumption and costs.
• Evergreen from Dairyland Renewable Energy Program Renewable energy program offered through Dairyland Power Cooperative, allowing members to support clean energy generation.
• Heartland Security Monitoring Home and business security monitoring services offered through partnership with Heartland Security.
• HomeServe Home Repair Service Plan Home repair service plan covering plumbing, electrical, HVAC, and other home systems through partnership with HomeServe.
• Viasat Satellite Internet Satellite internet service available to members through partnership with Viasat.
• Operation Round Up Community Grants Community grant program where members round up their electric bills to support local organizations and community initiatives.
• Capital Credits Member benefit program where margins are returned to members based on their electricity purchases, reflecting the cooperative business model.
• Co-op Connections Discount Program Discount program offering members savings on products and services through partner merchants.
• Outage Notification Service Real-time outage notification service providing members with up-to-date information during power outages to improve communication and response.

Quantifiable outcome

• 30.6 minutes average annual outage time per member (vs. 60-100 minute national average)
• +3 more outcomes

Named customers1 record

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

Nine partnerships are on record, tiered minor and core.

• Olmsted County and Cenergy PowerminorStrategic or Co-development Partner · 1 January 202125-year agreement for a one-megawatt solar array located in Haverhill Township, announced in 2021.
• Southern Minnesota Energy Cooperative (SMEC)coreStrategic or Co-development Partner · 1 January 2015Formed with 11 other cooperatives to negotiate with Alliant Energy for purchase of their Minnesota service territory. SMEC acquisition added nearly 50% to PEC membership.
• Minnesota Three LLCcoreStrategic or Co-development Partner · 1 January 2014Joint venture with Tri-County Electric Cooperative (now MiEnergy) and Freeborn-Mower Electric Cooperative to operate a utility-scale solar array north of PEC headquarters in Oronoco.
• Touchstone Energy CooperativesminorGTM or Marketing Partner · 1 January 1997National alliance of electric cooperatives. PEC joined in 1997 to leverage cooperative branding and marketing resources.
• Dairyland Power CooperativecoreStrategic or Co-development Partner · 1 January 1955Long-term partnership where DPC serves as wholesale power provider (G&T cooperative). DPC generates and transmits electricity to PEC and 23 other distribution cooperatives. Key projects include MariBell Transmission Project and renewable energy programs.
• Xcel EnergycoreTechnology or IntegrationXcel Energy is the energy provider for Project Skyway site in Pine Island and is building the northern segment of the Gopher to Badger Link transmission project (Tranche 2.1).
• Ryan Companies US, Inc.minorStrategic or Co-development PartnerDeveloper working with City of Pine Island to prepare land for Project Skyway (482 acres) for future data center development.
• GridLiance Heartland, LLCcoreStrategic or Co-development PartnerPartnership for MariBell Transmission Project - jointly developing and co-owning 765kV/161kV double-circuit transmission line between Marion, MN and Bell Center, WI (139 miles).
• Family Service RochesterminorOthersNonprofit partner for Neighbors Helping Neighbors program where PEC employees volunteer to help members with yardwork and community assistance.

Scale indicators8 records

Recent moves12 records

Expansion highlights5 records

Direct peers

• Connexus Energy: Minnesota's largest electric cooperative, serving over 140,000 homes and businesses in the Twin Cities north metro and central Minnesota. Directly comparable member-owned electric distribution business model, SmartHub-style member platform, and community solar / EV programs in a similar regulatory environment.
• Stearns Electric Association: Central Minnesota electric distribution cooperative serving ~27,000 members across a comparable rural footprint. Same Touchstone Energy co-op branding, similar member programs, and overlapping Dairyland/regional generation dynamics.
• Lake Region Electric Cooperative: West-central Minnesota electric distribution cooperative serving roughly 30,000 members. Closely comparable cooperative governance, Touchstone Energy affiliation, and rural distribution focus with similar smart-grid and member-program investments.
• Polk-Burnett Electric Cooperative: Wisconsin electric distribution cooperative on PEC's eastern border, sharing Dairyland Power Cooperative as a wholesale supplier. Directly comparable rural member-owned distribution utility with adjacent service territory and renewable program offerings.
• Southern Minnesota Energy Cooperative (SMEC): Special-purpose cooperative formed by PEC and 11 other co-ops to acquire Alliant Energy's Minnesota service territory in 2015. Direct peer in governance and acquisition strategy; the structure through which PEC executed its largest growth event.
• East Central Energy: East-central Minnesota and western Wisconsin electric cooperative serving over 65,000 meters. Same member-owned cooperative model, community solar offerings, and similar mix of residential/agricultural/industrial members.
• Freeborn-Mower Electric Cooperative: Rural southern Minnesota distribution cooperative and the third member of the Minnesota Three LLC solar joint venture with PEC. Comparable size, member-owned governance, and Dairyland wholesale power relationship.
• MiEnergy Cooperative (formerly Tri-County Electric Cooperative): Southeast Minnesota electric distribution cooperative and PEC's joint-venture partner in Minnesota Three LLC (utility-scale solar). Same member-owned co-op model, similar service-territory size, and shared G&T relationship with Dairyland Power Cooperative.

Broad incumbents

• Dairyland Power Cooperative: Generation-and-transmission (G&T) cooperative supplying wholesale power to PEC and 23 other distribution co-ops across four states. The upstream counterpart in PEC's vertical structure — not a direct competitor, but the most economically linked counterparty in the business model.

Emerging players

• Goodhue County Cooperative Electric: Small Minnesota electric distribution cooperative in PEC's broader regional footprint with comparable member-owned model. Smaller scale but relevant for benchmarking cooperative economics, member programming, and Dairyland wholesale dynamics in the same region.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/PeoplesEnergyCooperative

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Subsidiaries1 record

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 People's Energy Cooperative