What does co-op water mean?

Asked by Vincent, 36115 Sat May 1, 2010

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3
Jackie Rankin, Agent, Fort Worth, TX
Sat May 1, 2010
Vincent,

Typically, both an electric and water cooperatives, and an investor owned utility distribute electricity/water to end-users pretty much the same way. The main difference between the two entities is more related to the fact that an electric/water cooperative is a not-for-profit organization owned by those it serves. An investor owned company is owned by stockholders, who may or may not be customers. Cooperatives are setup to provide services at cost to its members. The profit margins made by a cooperative are invested in plant and equipment. When prudent financial considerations allow, previously retained profit margins are returned to the cooperative’s members by way of a capital credit check. Hope that helps!

Jackie Rankin
Tru Value Realty
1 vote
Betty, Home Buyer, Mansfield, TX
Wed Aug 1, 2012
We are also buying a home that has co-op water, that I have never had before. So is it like having an HOA for the water? (Kinda) we pay them dues? Or is the water bill everything we pay ? Do all co-op water give a dividend check each year? or just the ones that choose to?
0 votes
Bruce Lynn, Agent, Coppell, TX
Thu May 6, 2010
Sometimes you get city water, sometimes well water....sometimes the hybrid is Co=op water or co-op electricity. Typicall in organized developments in rural areas, but not excusively so. Jackie's answer is very nice.
Web Reference:  http://www.teamlynn.com
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