In a recent survey, the National Cooperative Business Association (NCBA) touches on many high voltage issues including: nominations, elections, and term limits for Electric CO-OP Directors. In light of recent high-profile CO-OP Board issues in the press, questions will certainly prompt some discussion and action by Electric CO-OP boards.

Challenges from State and Local Government, in addition to recent rulings and investigations of CO-OP Boards by the Judiciary, are prompting Electric CO-OPs to take a balanced look at board and governance and election practices. The core principles of membership ownership and control demand nothing less in this environment. As NCBA President/CEO Paul Hazen stated in his letter to the House Ways and Means Committee,

Regardless of the size or the success of the CO-OP, the structure remains the same. They are member-owned and member-controlled. The NCBA survey results provide useful information to assist CO-OP leaders in modifying Board Nomination, Election, and Term Limit Practices.

Board Nominations

It is interesting to note that 67% of responding CO-OPs indicated that a nominating committee nominated board candidates, while 51% indicated that members nominated board candidates.

79% percent of credit unions and 80% of telecommunications CO-OPs used nominating committees. Of the responding CO-OPs with a nominating committee, 61% reported that committee members were selected by the board; 26% were selected by the board chair.

50% of Electric CO-OPs indicated their boards selected nominating committee members; 45% reported their board chair selected them.

The NCBA survey results certainly might cause Electric CO-OP Boards and Members to raise valid questions about whether the nomination committee process perpetuates a boards' current composition, if this factor is best for the CO-OP s members, and what best practices are available to address this potential hot wire.

Elections

According to Governance consultant Barbara Wirtz, The survey revealed elections were contested 'always' or 'most of the time' among 41% of responding consumer co-ops, 18% of 'other' co-ops, and 28% of both rural electric and telecommunications co-ops.

Board elections were contested 'never' or 'rarely' in 44% of rural electric co-ops, 49% of telecommunications co-ops, 52% of consumer co-ops, and 64% of other co-ops. To say the least, the NCBA survey certainly prompts inquiry into what factors cause such large numbers of CO-OP elections to be uncontested!

Term Limits

According to the NCBA survey, 85% of CO-OPS reported they had no consecutive term limits. The lack of term limits certainly raises questions regarding how boards can best respond to the changing demographics of CO-OP membership, while tapping into the wisdom of their dedicated, experienced volunteers.

The survey certainly prompts serious inquiry into how to encourage more qualified candidates to run for director positions. Nominations, elections, and term limits influence board composition as well as length of service.

The need to uphold Electric CO-OPs' democratic principles, in addition to the need to reflect a more diverse demographic profile, might prompt CO-OP boards to consider diversifying board membership.

In light of recent Board issues at Pedernales Electric CO-OP, one of the countries largest electric CO-Ops, it is imperative that CO-OP Boards examine current nomination, election, and terms of service practices.

These practices should be examined in light of both the political and legal challenges the Electric CO-OP movement faces. The survey results provide insight that can help leaders shape the future of board governance elections and avoid potential hot wire issues.