The spirit of electric cooperatives has a long history in the Philippines. Like the U.S. in 1935—when the first rural electric cooperatives were established— poverty was widespread in rural Philippines in 1969. When NRECA International employees initiated USAID funded pilot programs in 1970, the idea of locally-owned, operated, and managed cooperatives—democracy in practice—inspired their efforts. By 1985, this spirit had transformed the lives of millions of rural Filipinos. Despite politicization and near financial collapse in the mid-1980s, many electric co-ops remained true to this spirit. Today, 85 percent of villages enjoy the benefits of electricity, and the 119 co-ops face a new challenge: How to finance the replacement and upgrading of equipment and facilities to meet the country’s growing power demand.
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