Reliability is at the center of Associated Electric Cooperative’s mission. As the rural electric industry grapples with new challenges — including a strong acceleration of growth in demand for power — AECI is committed to providing dependable, wholesale power for rural communities in the heartland of America.
AECI operates under a unique three-tiered system, independent of regional transmission organizations. At the base of its business model are 51 distribution cooperatives that own six transmission co-ops, which in turn own AECI. This structure streamlines governance with a smaller 12-member board and creates a clear flow of power: AECI generates electricity for its transmission owners, which then transmit it to the distribution co-ops that provide power to 2.1 million member-consumers across rural Missouri, Oklahoma and Iowa.
“Reliable electricity is imperative. We depend on it for so many aspects of our lives — it’s truly one of the most important resources we have,” said David Tudor, chief executive officer and general manager of AECI. “Electricity cools and heats your home. It powers your appliances and electronics … it keeps your lights on and life moving forward. It might not always be at the forefront of our minds, but it’s constant, and it’s crucial. And that’s why we’re here.”
To ensure stability for its members, AECI uses a diverse generation mix — including coal and natural gas, as well as wind and hydropower. This blend helps lower the cost and ensures power, even during extreme weather conditions.
They aren't just a lender — they’re a partner who understands our business and our decisions.
“Our members depend on us, and that means keeping every option on the table until new and proven technologies emerge,” Tudor said. “We’re open to cleaner energy resources — including nuclear and carbon capture — but it needs to become more viable first.”
To meet growing member demand, AECI is adding two natural gas peaker plants, which will each generate 420 megawatts and are slated for completion in 2026 and 2027. Its longtime partner, CoBank, along with various other Farm Credit System partners, is financing the project with a $150 million bridge loan.
“We have worked with CoBank for over 30 years. They aren’t just a lender — they’re a partner who understands our business and our decisions. Whether it’s through loans, lines of credit or support during critical times, they stand with us,” Tudor said.
AECI is committed to its members and the rural communities it serves — and is ready to adapt and thrive alongside the industry. “We’re excited for what’s next. Whatever the future brings, our focus remains on our members. We’re proud to partner with a bank that understands the cooperative model and shares our same outlook,” Tudor said.