A3o—Lancaster Farming, Saturday, June 13,1981
Rural power co-ops fighting fiscal cuts
BY DICK ANGLESTEIN
HARRISBURG Rural electric
cooperatives - not only in Penn
sylvania but throughout the nation
- are pulling out all of the stops in a
fiscal fight with the Reagan Ad
ministration.
Terming- the situation a battle
for survival for the co-ops and the
more than 25 million farm and
other rural residents who receive
their power through them, officials
of the Rural Electric Cooperative
Association say that the ad
ministration fiscal proposals could
as much as double electric rates.
The Pennsylvania Rural
Electric Association held a press
briefing in Harrisburg this week on
the fiscal controversy which
centers on the way in which the
electric co-ops borrow money for
construction projects.
In essence, the administration
wants to get the Federal Govem
USDA holds public meetings
on economics and statistics
WASHINGTON, D.C. - The U.S.
Department of Agriculture will
hold public meetings here June 23
and 24 to discuss pnorities and
possible cuts or redirections in its
economics and statistics programs
for fiscal years 1982 and 1983 that
may be imposed by budget
limitations.
Assistant Secretary of
Agriculture for Economics
William Lesher said he wants
recommendations from people
who use statistics, research and
analyses from USDA’s Economics
and Statistics Service concerning
what areas could be reduced or
eliminated based on the relative
value of these programs to the
public.
The meetings will be held in
room 330,500 th 12th St., S.W., from
9 a.m. until 4 p.m. The June 23
meeting will cover the agency’s
statistical programs and the June
24 meeting will cover its economic
analysis and research work.
PAUL B.
gPuDDuDBPDuD’^IDai
"T" LOOP STALLS
With EASY LIFT TRAINING BAR
Which Prevents Trapped Cow Problems
Stall tubing 2-3/8 inches outside diameter, 12 ga. (.102)
wall thickness, high yield steel. 75,000 p.s.i. tensile strength.
ALSO AVAILABLE
• Standard Free Stalls • Fencing
• Gates (38” - 48” - 54” • Automatic Head Gates
high) • Self Locking Feed
• Automatic Gate Latches Through Fence
PAUL B. ZIMMERMAN, INC.
Box 128 R D. #4, Lititz, PA 17543
Wood Corner Rd.
1 Mile West of Ephrata
Phone 717-738-1121
Hardware • Farm Supplies
Custom Manufacturing
Crane Service
ment out of the business of
securing loans for rural' electric
projects, sending the co-ops into
the open money market for the
loans, which would carry higher
interest rates.
The Federal Government says
the proposed change would save
considerable money as part of its
economic recovery program. The
rural electric cooperatives counter
that the proposals would be in
flationary and not reduce the
federal budget and only put an
extra financial burden on rural
residents.
In Pennsylvania, where some
160,000 rural consumers are served
by 14 co-ops largely in the nor
thwestern part of the state, across
the northern tier of counties and
from the central part of the state
down into the southcentral region,
the administration’s proposals
would have the following effects,
"The Economics and Statistics
Service needs to systematically
assess its priorities to maintain the
quality of its work in light of rising
costs and tighter funding con
straints,” Lesher said.
“We expect one of the tightest
budget years we have ever had,”
he said. “Recommendations from
the public meetings will be im
portant in developing our plans for
the next two years.’’
Meeting participants will each
have 10 minutes to comment, or
they may submit written
responses, which will be accepted
through July 3,
Those who wanttcrattend either
session, want more information
about the current programs or
want to submit written comments
should contact; Kenneth R.
Farrell, administrator. Economics
and Statistics Service, USDA,
Room 448-GHI Bldg., Washington,
D.C., 20250. Phone: 202/447-8104.
according to William F. Matson,
general manager of the Penn
sylvania Rural Electric
Association:
-Electric rates of co-op mem
bers could be increased as much as
six cents per kilowatt hour, which
would more than double bills. (The
administration maintains higher
costs to co-ops might increase
rates one to two cents per kilowatt
hour.)
-Over the next 10 years, higher
interest costs for construction
projects planned in Pennsylvania
by the co-ops would total more
than $659 million.
-These higher interest costs
would amount to some $4,174 added
to the electric bill of co-op mem
bers over the next decade.
In the battle with the ad
ministration over the proposals,
the National Rural Electric
Cooperative Association and its
state counterparts, such as the
Pennsylvania Rural Electric
Association, are engaged in a
large-scale communication
program with members, who in
turn are urged to contact their
senators and congressmen.
A variety of pamphlets and
articles in newsletters and
magazines, including pre-pnnted
Capacity Diameter Length Gauge Weight Price FOB
(Gallons) (Thickness) (Pounds) Quarryville
285 ?¥' 12 278 114.00
550 4'o” 6'o" 10 549 210.00
550 4’o" 60” 7 751 262.00
1.000 4’o” 10'8" 10 827 310.00
1.000 4 0" 10'8" 7 1,129 390.00
1.000 5'4” 60” 7 1,028 362.00
1,500 5’4” 90” 7 1,388 486.00
2.000 5’4" 12'0" 7 1,735 593.00
3.000 54" 1711" 7 2,432 800.00
4.000 ‘ 5’4" 23’10” 7 3,130 1009.00
5.000 8’0" 137” 1/4” 4,484 1645.00
6.000 8’0” 16’2” . 1/4" 5,123 1800.00
8.000 8’0" 21*6” 1/4" 6,475 2230.00
10.000 8'0" 26’10” 1/4” 7,825 2660.00
10.000 lO’O" 17'0” 1/4” 6,956 2405.00
12.000 10’0" 20’6” 1/4" 8,074 2800.00
12.000 10’6" 187” 1/4" 7,900 2690.00
15.000 10’6” 23’2” 5/16” 11,857 4130.00
20.000 10’6" 31 ’0" 5/16” 15,105 5160.00
25.000 10’6” 387" 3/B’* 22,115 8135.00
30.000 10’6" 46’4" 3/8” 25.999 9430.00
Tanks all bear Underwriters’ Label, and are boated with black asphaltum
paint. We can provide timely delivery from Quarryvil le, PA (15 miles from the
Pennsylvania Maryland line) to Maryland, Delaware, Virginia, New Jersey &
New York. Contact us for delivery costs. We invite inquiries by phone or mail.
PILL-WTi & f’umfs
HOWARD E. GROFF CO.
postcards to Senate and House
members, have been prepared by
the national and state associations.
Financing of cooperative rural
electrification projects is > ac
complished through the Rural
Electrification Administration
under the U.S. Department of
Agriculture.'
Thisiinancing is essentially done
in three different ways.
First, money for distribution
systems comes out of a revolving
fund. Co-ops are. charged interest
rates of two or five per cent for
loans from this fund. The fund is
replenished from the money Repaid
to the fund by borrowing co-ops.
Second, since only about 70
percent of the distribution project
costs comes out of the revolving
fund, co-ops must go out on the
open money market for the
remaining 30 percent.
Third, projects involving the
construction of generating and
transmission facilities are
financed through a loan program
guaranteed by the federal
government. These loans are
secured by co-ops through the
Federal Financing BanK in the
Treasury Department. Lower
interest rates are secured for these
loans than could be obtained by
NEW UNDERGROUND STEEL FUEL STORAGE TANKS
Over Forty Years of Reliable Service
Fuel Oil, Gasoline, and Coal
111 E. State Street, Quarry vide, PA 17566
Phone: 717-786-2166
individual co-ops.
The Reagan Administration
proposes to eliminate the two
percent loans from the revolving
fund, reduce the amount of five
percent loans and do away with the
role of the Federal Financing Bank
in securing loans and subsitute
privately originated loans.
The rural electric cooperatives
maintain that since all of the _
present borrowing is fully financed
by the co-ops the changes would
not save taxpayers any money.
But administration budget of
ficials contend that the changes
'would substantially reduce direct
federal lendings along with interest
subsidy costs.
The cdoperatives and the _
government are at odds on other
fiscal figures, too. The co-ops say
that their members already pay
higher rates for electricity; while (-
the government states they pay
lower rates.
The co-ops explain that a con
tinuation of present financing is -
needed to continue to bring power
to rural areas without imposing
- extra burdetu on members. But "
the government replies that since
these rural systems are now
largely built, their costs should be
fully borne by members.
DIESEL FUEL IS
HIGH ENOUGH AS IS
SO DON'T RAISE
PRICE HIGHER!
Get most out of every drop with regular
maintenance and prompt repairs at the
diesel specialists.
MILLER DIESEL, INC
6030 JONESTOWN RD.
HARRISBURG.PA 17X12 .
717-545-5931 Exit 261-81
YOUR DIESEL CAN’T BE
IN BETTER HANDS!
OVER 24 YEARS
IN THE DIESEL BUSINESS