Rural American began to light up when the Rural Electrification Administration was formed as part of the U.S. Department of Agriculture. Low-interest loans were made available to form nonprofit cooperatives, bringing electrification to the countryside. Within a year, Shelby RECC was bringing power to 108 consumers. Then new conveniences like refrigerators, stoves, fans and radios made life easier and more enjoyable. In 1997 the cooperative's membership approved a name change to Shelby Energy Cooperative, Inc., to allow the cooperative to become more competitive.
Cooperatives are unique businesses.
They are organized to provide a needed product or service based on the nonprofit principal. There are no stockholders in an electric cooperative. After all expenses have been paid, any remaining money is returned to the customers as capital credits. Everyone who buys electricity from the utility is part-owner. Shelby Energy is controlled by a six-member board of directors elected from its membership.