Wiktor Wise
The Rural Electrification Administration (REA) was established by President Roosevelt in 1935 to provide federal loans for the installation of electrical distribution systems in rural areas of the United States. The REA is now known as the Rural Utilities Service (RUS) and is part of the U.S. Department of Agriculture. Does this mean that REA Electric has a different name?
| Characteristics | Values |
|---|---|
| Full Form | Rural Electrification Administration |
| Current Name | Rural Utilities Service (RUS) |
| Parent Organisation | U.S. Department of Agriculture |
| Year of Establishment | 1935 |
| Established by | President Roosevelt |
| Year Rural Electrification Act passed | 1936 |
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What You'll Learn
- The Rural Electrification Administration (REA) was established by President Roosevelt in 1935
- REA is now the Rural Utilities Service (RUS), part of the US Department of Agriculture
- The REA provided federal loans for the installation of electrical systems in isolated rural areas
- The REA's construction of electrical systems slowed during the war but picked up again after the Pace Act was passed in 1944
- The REA brought electricity to rural America, profoundly improving health, education, and home life
The Rural Electrification Administration (REA) was established by President Roosevelt in 1935
The Rural Electrification Administration (REA) was established by President Franklin D. Roosevelt on May 11, 1935, through Executive Order 7037. The REA was created to address the lack of electric service in rural areas, as in the mid-1930s, 90% of rural homes had no electricity.
The establishment of the REA was a significant step in Roosevelt's commitment to the development of public power, which began with the creation of the Tennessee Valley Authority (TVA) in December 1933. The TVA's initial operations included organizing a farmer-owned rural electric cooperative in Mississippi, which served as an experiment to test the ability of farmers to manage an electric cooperative successfully. The positive outcome of this experiment encouraged Morris L. Cooke, Roosevelt's chief advisor on public power, to advocate for a dedicated agency focused on rural electrification.
The REA's creation in 1935 was followed by the passage of the Rural Electrification Act in 1936, which provided federal loans for the installation of electrical distribution systems in rural areas. This act enabled the REA to begin its construction program, primarily relying on farmer-owned cooperatives, similar to the TVA experiment. The REA's efforts resulted in significant increases in rural electric systems, consumers, and miles of power lines by 1949.
The REA played a crucial role in bringing electricity to rural America, with 90% of farms and rural homes electrified by 1955. This electrification brought about profound changes in country living, improving health, education, and the overall quality of life for rural residents. Today, the REA, now known as the Rural Utilities Service (RUS), is part of the U.S. Department of Agriculture, and its legacy continues to impact rural communities across the nation.
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REA is now the Rural Utilities Service (RUS), part of the US Department of Agriculture
The Rural Electrification Administration (REA) was established in 1935 by President Franklin D. Roosevelt to address the lack of electric service in rural areas. At the time, 90% of rural homes had no electricity, and only 3% of farms had electric power. Roosevelt's commitment to the development of public power led to the creation of the Tennessee Valley Authority (TVA) in 1933, which served as the first step towards the rural electrification program.
The REA's primary objective was to provide federal loans for the installation of electrical distribution systems in isolated rural areas. The funding was channelled through cooperative electric power companies, which purchased power wholesale and distributed it through their transmission and distribution lines. The success of the REA can be seen in the rapid increase in rural electric systems, consumers, and miles of lines. By 1949, the number of consumers had more than tripled, and the miles of lines had increased fivefold.
However, the REA faced challenges during World War II, with construction slowing down significantly. In 1944, Congress passed the Pace Act, which set the REA's interest rate on loans to cooperatives at 2%. This, along with the postwar boom, allowed the REA to embark on a massive construction program, eventually achieving rural electrification. By 1955, 90% of farms and rural homes in the United States had electricity.
Today, the REA, known for its significant contributions to rural electrification, has evolved and is now called the Rural Utilities Service (RUS). It operates under the umbrella of the US Department of Agriculture, continuing its legacy of empowering rural communities and driving development in previously underserved areas.
The Rural Utilities Service, previously known as the REA, remains dedicated to enhancing the quality of life in rural areas. It provides financial support and expertise to help rural communities improve their utility infrastructure, including access to reliable and affordable electricity. The transformation from REA to RUS reflects the organization's evolution and its ongoing commitment to serving the diverse needs of rural America.
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The REA provided federal loans for the installation of electrical systems in isolated rural areas
The Rural Electrification Administration (REA) was established through an executive order by President Franklin D. Roosevelt in 1935. The REA provided federal loans for the installation of electrical systems in isolated rural areas. This was achieved by providing funds to locally owned rural electric cooperatives to build lines and provide service on a not-for-profit basis.
The Rural Electrification Act, passed by Congress in 1936, was one of many New Deal proposals by Roosevelt to address the economic challenges of the Great Depression. The Act provided federal loans to create electrical distribution systems for millions of Americans living in rural areas. At the time, electricity was commonplace in cities but largely unavailable in farms, ranches, and other rural places.
The REA cooperatives used a 6900-volt distribution network, which could support much longer runs of up to about 40 miles (64 km). REA crews travelled through the countryside with teams of electricians, who added wiring to houses and barns to utilise the newly available power. A standard REA installation in a house included a ceiling-mounted light fixture in each room, controlled by a single switch near a door, and typically one outlet per room, as plug-connected appliances were expensive and uncommon.
The REA loans were used to fund appliances for rural farms and homes, and the economic heft of the REA helped negotiate bulk-purchase rates for co-ops, significantly reducing the cost of building power lines in rural areas. The default rate on these loans was less than 1%, indicating that the government essentially provided electricity to its rural population for free. By the end of the 1940s, approximately half of all farms had access to electricity, and by 1953, rural Americans had the same access to electricity as urban dwellers.
The REA, now known as the Rural Utilities Service (RUS), still exists today and operates under the Department of Agriculture. The success of the REA and its lasting impact on rural America is a testament to the importance of providing federal assistance for critical infrastructure in underserved areas.
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The REA's construction of electrical systems slowed during the war but picked up again after the Pace Act was passed in 1944
The Rural Electrification Administration (REA) was established in 1935 by President Franklin D. Roosevelt through an executive order. The REA was created to supervise the distribution of electric energy to remote regions of the United States by providing loans to finance the construction of electricity infrastructure.
The REA's construction of electrical systems slowed during World War II, but it did not come to a complete halt. The progress of electrification continued, albeit at a slightly slower pace, as the United States shifted its focus to wartime production and addressing the economic challenges of the war.
In 1942, America's electric cooperatives formed the National Rural Electric Cooperative Association (NRECA) to defend themselves against false claims of hoarding copper wire during the war. This unified voice for cooperatives also represented their interests in Washington, DC.
The Pace Act, also known as the Servicemen's Readjustment Act, was passed in 1944, a year before World War II ended. This act was part of President Roosevelt's plan to help veterans returning home and improve their lives. While the Pace Act did not directly address the construction of electrical systems, it reflected the emerging economic power of the United States and its shift towards engagement and activity on the global stage.
After World War II, the REA's construction of electrical systems picked up momentum again. By the end of the 1940s, approximately half of all farms had access to electricity, and by 1953, rural Americans could access electricity as easily as their urban counterparts. The success of the REA program is evident in the fact that by the end of the 1940s, the electrification of the nation was well underway, and the lives of farmers were significantly improved with access to electricity for lighting and machinery.
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The REA brought electricity to rural America, profoundly improving health, education, and home life
The Rural Electrification Administration (REA) was established in 1935 by President Franklin Roosevelt through an executive order. The REA was tasked with "initiating, formulating, administering, and supervising a program of approved projects with respect to the generation, transmission, and distribution of electric energy in rural areas."
The REA's work was instrumental in bringing electricity to rural America, which had a profound impact on the health, education, and home life of people in these communities. Electrification improved health by providing a substitute for kerosene lamps, reducing smoke inhalation and boosting nighttime illumination. It also saved time and effort by introducing electric appliances such as washing machines, freeing up hours that could be spent on other tasks or leisure.
The availability of electricity in rural areas improved the standard of living and made rural life more attractive, reducing the incentive to move to cities. This led to the establishment of new industries in these regions, contributing to long-term economic benefits and diversifying the American economy. The REA's success in promoting electric power usage resulted in increased demand, leading to the construction of power plants and dams to meet this demand.
The REA primarily achieved this through the co-op model, providing loans to farmers who organized themselves into cooperatives. This allowed for the rapid expansion of electrical infrastructure in rural areas, and the co-op model has since been proposed for other types of infrastructure improvements. The REA's impact extended beyond the practical benefits of electricity, contributing to the modernization of rural America and profoundly changing the lives of its residents.
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Frequently asked questions
REA stands for Rural Electrification Administration.
In the 1930s, 90% of rural homes had no electric service. The Rural Electrification Administration was created to provide federal loans for the installation of electrical distribution systems to serve these isolated areas.
The Rural Electrification Administration was established on May 11, 1935, by President Roosevelt through Executive Order No. 7037.
The Rural Electrification Administration (REA) is now called the Rural Utilities Service (RUS) and is part of the U.S. Department of Agriculture.
