DtUncMter Firming, Saturday, Saturday, October S, 1996
Pennsylvania Rural Electric Assn. Serves 600,000 Residents
The Pennsylvania Rural
Electric Association (PREA),
based in Harrisburg, Pa., is the
service organization for the
nonprofit, consumer-owned
rural electric cooperatives in
Pennsylvania and New Jersey.
Currently, the 13 co-ops in
Pennsylvania and one in New
Jersey provide electric service
to more than 600,000 rural resi
dents, businesses and indus
tries. Pennsylvania’s co-ops
own and maintain about 12. S
percent of the electric distribu
tion lines id the state, covering
nearly one-third of the Com
monwealth’s land area in 41
counties. These lines represent
one of the laigest non-govern
mental investments in rural in
frastructure in the state and are
an essential component of busi
ness and industry.
PREA’s 14-membcr board
of directors one director
elected from each of its mem
ber cooperatives conducts
the association’s business to
best serve the consumer-mem
bers of the co-ops.
PREA works jointly with
Allegheny Electric Coopera
tive, Inc., a generation and
transmission cooperative that
provides wholesale power to
the 14 co-ops.
HISTORY
As late as the 1930 s , only
six out of every 100 rural Penn
sylvanians knew the miracle of
the electric light bulb in their
homes. The reason estab
lished power companies in
Pennsylvania and New Jersey
had decided that running elec
tric lines into rural areas would
not make them a profit.
As a rule, power companies
changed farmers $2,000 to
$3,000 per mile to build lines
to their homes and then
charged electric rates higher
than those in the cities. Since
the average gross income of a
farm family of the period was
just $l,BOO per year, most
couldn’t afford electric service.
In many areas, power was
not available at any cost For a
time it seemed the profit needs
greed of stockholder
controlled private power com
panies would condemn most of
Pennsylvania’s and New Jer
sey’s rural population to live
forever with kerosene lamps
and hand pumps.
Bur rural leaders and a hand-
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ful of politicians were not
ready to accept the status quo.
They began working to demon
strate that electric power could
be provided to rural areas at a
reasonable cost and began de
veloping a business structure to
make that delivery possible.
In 1931, New York Gover
nor Franklin D. Roosevelt es
tablished the Power Authority
of the State of New York
(PASNY) to develop water
power on the St. Lawrence
River. PASNY produced the
first study on the actual costs of
electric distribution and helped
demonstrate the practicality of
providing electricity to rural
areas.
The first official federal ac
tion in the process leading to
rural electrification came in
1933 with the formation of the
Tennessee Valley Authority
(TVA). The act enabling the
TV A authorized the construc
tion of transmission lines to
serve farms and small villages
“not otherwise supplied with
electricity at reasonable rates”
and gave preference in the sale
of power to “cooperative or
ganizations of citizens or farm
ers.
In 1935, armed with studies
showing both the economic
feasibility and the benefits of
providing electricity to rural
areas. thcn-President Roosevelt
signed an executive order
forming the Rural Electrifica
tion Administration (REA).
The REA program was ini
tially intended as an induce
ment to the private power com
panies to begin serving rural
areas. But even with the incen
tives provided by 2 percent
REA loans, the private power
suppliers showed little interest
in building the necessary lines.
By the end of 1935, it was clear
that the private power compan
ies weren’t serious about acting
on the government’s offer to
electrify the countryside. Most
of the loan applications and in
quiries REA received came
from farm co-ops. REA now
realized that farmers and their
rural neighbors were willing to
take electrification into their
own hands on a cooperative
basis.
Farmers had long experience
with cooperatives. In fact, the
co-op was the business struc
ture rural people adopted when
confronted with a task too large
for any family to handle itself.
It was natural then that rural
leaders chose to form another
kind of co-op to provide them
selves and their neighbors with
electricity. Since extending
central station electric service
required very specialized engi
neering skills, many in Con
gress were convinced rural
electrification would never be
accomplished without REA re
ceiving regular appropriations
and full status. So in 1936, one
year and 20 days after REA had
been created. Congress passed
legislation making REA a per
manent government agency. In
1939, REA became part of the
U.S. Department of Agricul
ture.
On October 20, 1994, a
sweeping reorganization of the
Ag Department took place. As
a result, after 59 years of exis
tence, REA was officially dis
banded. Most REA functions
were transferred to a new Rural
Utilities Service (RUS).
But the mission of rural elec
trification continues. Today,
about 1,000 electric coopera
tives across the United States
provide power to more than 25
million consumer members.
Each co-op is a locally owned,
taxpaying business incorpor
ated undo* the laws of its indi
vidual state.
Rural electric cooperatives
have been delivering low-cost
electric service to Pennsylvania
and New Jersey rural residents
since 1936, when the Steam
burg Electric Cooperative As
sociation (later consolidated in
to Northwestern Rural Electric
Cooperative) was established
in Erie and Crawford counties.
The 14 rural electric co
operatives that today comprise
PREA were organized between
1936 and 1941. By the time the
Japanese attacked Pearl Harbor
on December 7, 1941, all of
them had gone through the
pangs of becoming organized,
of getting their first loans, of
making arrangements for pow
er supply at least on a short
term basis and had begun con
struction of lines to reach their
unserved neighbors.
With the outbreak of WWII,
the co-ops realized they need a
statewide organization to speak
for them as one voice on legis
lative issues. The co-ops cre
ated PREA in February 1942.
OCTOBER
IS CO-OP
MONTH
RURAL ELECTRIC
COOPERATIVES
Rural Electric Cooperatives have been
providing low-cost electric service to
Pennsylvania rural residents since 1936, when
the Steamburg Electric Cooperative Association
(later consolidated into Northwestern Rural
Electric Cooperatives) was established in
Crawford and Erie counties.
Today, rural electric cooperatives in
Pennsylvania are providing reliable electric
service to many rural residents in numerous
counties. Many rural electric co-ops are involved
in economic growth efforts and community
programs to meet rural needs.
Rural electric cooperatives are owned and
controlled by the people they serve. The
consumers who receive electricity from them are
cooperative members, and share responsibility
for the success of the cooperative.
The following Rural Electric Cooperatives are
proud to be a part of the 1996 Co-Op Month
Campaign.
SOMERSET
RURAL
ELECTRIC, INC.
Somerset, PA
814-445-4106
Serving Somerset, Bedford,
Westmoreland, Fayette and
Garrett, Md. Counties
CENTRAL
ELECTRIC
COOPERATIVE
Parker, PA
412-399-2931
Serving Armstrong, Butler,
Clarion and Venango
Counties
VALLEY RURAL
ELECTRIC COOP
Huntingdon, PA
814-643-2650
800-432-0680
Serving Bedford, Blair,
Centre, Franklin, Fulton,
Huntingdon, Juniata and
Mifflin Counties.
aJ I A»VniwylMml« S s\
j ELECTRIC COOPERATIVE JNC.
212 Locust Street _ , _ ___ .
• p.o. box 1266 717-233-5704
•Harrisburg, PA 17108
NEW
ENTERPRISE
Rural Electric, Inc
New Enterprise, PA
Providing Rural Electric
Needs for Bedford, Fulton and
Huntingdon Counties
UNITED ELECTRIC
COOPERATIVE, INC.
Dubois, PA
814-371-8570
800-262-8959
Serving Armstrong, Cambria,
Centre, Clarion, Clearfield,
Clinton, Elk, Forest, Indiana,
and Jefferson Counties
Delivering reliable
electric power to
g 25,000 homes, farms
yqmmm anc j businesses in the
heart of Southcentral
Pennsylvania
ADAMS ELECTRIC
COOPERATIVE, INC.
Phone toll-free
1-888-ADAMSEC