Trystan Casey
The Rural Electrification Administration (REA) was established in 1935 to address the lack of electricity access in rural Wisconsin. Prior to this, electricity was expensive and primarily available in cities, with most power companies focusing on urban areas for profitability. The REA provided low-interest loans to farmers to build their own power lines and access electricity. By 1939, the average cost of constructing a mile of rural electric line had significantly decreased, making it more affordable for rural residents to access electricity. Within fifteen years, 90% of American farms had electricity. Today, rural electric systems in Wisconsin serve more than 520,000 people, and cooperatives continue to play an important role in providing electricity and additional services to these communities.
| Characteristics | Values |
|---|---|
| Year electricity first came to rural Wisconsin | 1930s |
| Year the Rural Electrification Administration (REA) was established | 1934-1935 |
| President who established the REA | Franklin D. Roosevelt |
| REA loan amount | $100,000,000 |
| Number of people served by rural electric systems in Wisconsin today | 520,000+ |
| Number of people served by Wisconsin Public Service | 450,000+ |
| Year Wisconsin's first electricity cooperative opened | 1937 |
| Year Wisconsin had over 400 dams | 1935 |
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What You'll Learn
Rural Electrification Administration (REA)
The Rural Electrification Administration (REA) was established by President Franklin D. Roosevelt in 1935 to help farmers meet their need for power. At the time, electricity was commonplace in cities but largely unavailable in farms, ranches, and other rural places. The REA provided federal loans for the installation of electrical distribution systems to serve these areas. The funding was channelled through cooperative electric power companies, which purchased power at wholesale prices and distributed it using their own transmission and distribution lines.
The REA gave farmers low-interest loans to build their own power lines and access electricity. The rural cooperative model had been successfully employed by Giant Power in Pennsylvania and was adopted by the REA, with congressional representatives serving as administrative liaisons for the formation of cooperatives within their districts. These cooperatives were not-for-profit, consumer-owned firms that provided electric service to member-customers. Each cooperative was governed by a board of directors elected from its residential customers, who established rates and policies and hired a general manager to run the business of providing electricity.
By 1938, just two years after the REA's inception, 350 cooperative projects in 45 states were delivering electricity to 1.5 million farms. Within 15 years, 90% of American farms had electricity, compared to just 3% in the early 1930s. The REA is considered one of the most immediate and profound successes in the history of federal policymaking for the national economy.
In addition to providing loans, the REA also educated consumers about the uses of electricity. They created the "Farm Equipment Tour", which travelled with a circus tent and trucks loaded with demonstration equipment for farms and homes. Manufacturers of electrical equipment joined the show, and farmers came to see the benefits of electrification. Women, in particular, were excited about the labour-saving devices that would become available to them.
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Electric cooperatives
Access to electricity in Wisconsin was limited until the 1880s, and few farms had electricity until the 1930s. The high cost of installing power lines and electricity bills meant that it was more profitable for companies to supply power to cities than rural areas.
In 1935, President Franklin Roosevelt established the Rural Electrification Administration (REA) as part of the New Deal to help farmers meet their need for electricity. The REA provided low-interest loans to farmers to build their own power lines and access electricity. The government encouraged non-profit, cooperative organizations of farmers to develop their electrical infrastructure.
Wisconsin's first electricity cooperative, the Richland Electric Cooperative, opened on May 7, 1937. Within fifteen years, 90% of American farms had electricity. Rural electric systems now serve more than 520,000 people in Wisconsin and over 34 million across the United States.
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The role of Franklin D. Roosevelt
In the years leading up to the 1930s, rural areas of Wisconsin were left without electricity as it was not profitable for power companies to provide electricity to these areas. While electricity had become available in towns and cities since the 1880s, most Wisconsin farms did not have electricity until the 1930s.
Franklin D. Roosevelt played a pivotal role in bringing electricity to rural Wisconsin. On May 11, 1935, Roosevelt signed an executive order creating the Rural Electrification Administration (REA). The REA was established to initiate and administer projects related to the generation, transmission, and distribution of electric energy in rural areas. Roosevelt's administration recognised that electricity was too important to the development of rural America to delay its provision any longer.
The REA provided federal loans for the installation of electrical distribution systems in rural areas. Farmers seized this opportunity and formed electric cooperatives. The REA also provided technical expertise, with engineers devising methods to make electrification more affordable. For instance, they developed stronger and lighter materials, which reduced the cost of constructing power lines.
By 1936, at least six electric cooperatives had been formed in Wisconsin, with 30 more in development. Rural electrification officially came to Wisconsin on May 7, 1937, when the Richland Electric Cooperative went into service. By 1945, all of Wisconsin's electric cooperatives had been organised. Today, more than 520,000 people in Wisconsin are served by rural electric systems, with cooperatives continuing to play an important role in their communities.
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Cost of rural electrification
The cost of rural electrification in Wisconsin was a significant hurdle for many residents in the early 20th century. Until the 1930s, most Wisconsin farms did not have electricity due to the high cost of installation and power. It was more profitable for utility companies to provide electricity to cities rather than rural areas, as the cost of stringing electric lines to isolated farms was deemed too expensive. Additionally, utility companies questioned whether farmers could afford such upgrades. As a result, only about 10% of rural dwellers had access to electricity in the 1930s, compared to nearly 90% of urban residents.
The Rural Electrification Administration (REA), established in 1935 under President Franklin D. Roosevelt, played a crucial role in addressing the cost challenges of rural electrification. The REA was created specifically to bring electricity to rural areas and improve living standards for families. It provided low-interest loans to farmers to build their own power lines and access electricity. The REA's impact extended beyond electricity; it helped educate consumers about the uses of electricity, promoting the benefits of electrification and bringing farmers into the 20th century.
In Wisconsin, the first electricity cooperative, Richland Electric Cooperative, opened on May 7, 1937. Farmer-owned cooperatives were already prevalent in the state's agriculture sector, so forming electrical co-ops was a natural progression. These cooperatives allowed farmers to collectively develop their electrical infrastructure and access affordable power. Within fifteen years of the REA's establishment, 90% of American farms had electricity, demonstrating the program's success.
While the REA and cooperatives significantly improved access to electricity, some costs remained for rural residents. The primary reason for connecting to the electric grid was to power barns or replace hand-operated machinery with electric alternatives. Refrigerators, radios, and electric stoves were considered luxury items that some rural families could not afford. Additionally, the cost of constructing electric lines continued to be a factor, but improvements in technology helped reduce these costs over time. By 1939, the average national cost of constructing a mile of rural electric line had decreased from over $2,000 to $600.
Today, rural Wisconsin continues to face energy challenges, with many households relying on expensive and unsafe propane or heating oil for heating. Air-source heat pumps (ASHPs) are now being promoted as a safe, efficient, and affordable alternative. ASHPs can provide significant cost savings, with adopters potentially saving up to $750 per year on heating and cooling costs. However, financing mechanisms are needed to help rural households and businesses afford the upfront costs of transitioning to more efficient energy systems.
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Impact on daily life
Access to electricity in rural Wisconsin was a slow process, with most farms only gaining access in the 1930s. Before this, electricity was largely limited to cities, as power companies found it more profitable to subsidize electrical service in urban areas. This began to change with the establishment of the Rural Electrification Administration (REA) in 1935, which provided loans and other support to bring electricity to rural areas.
The impact of electricity on daily life in rural Wisconsin was significant and far-reaching. Firstly, it transformed agricultural practices and industries. Electrification allowed farmers to replace hand-operated machinery and tools with their electric counterparts, improving efficiency and reducing physical labour. Electric power also enabled the mechanization of previously manual tasks, such as operating creameries and cheese factories, or electrifying barns.
Electricity also brought new conveniences and amenities to rural homes. While some families acquired modern appliances such as refrigerators, radios, and electric stoves, these were often considered luxury items. More commonly, housewives purchased electric irons or sewing machines, which made their daily chores easier and less time-consuming. The introduction of electric lighting also had a significant impact, providing a source of illumination that was cleaner, safer, and more convenient than traditional oil lamps or candles.
Electricity also enabled the development of new infrastructure and services in rural communities. The establishment of electric cooperatives, such as the Marathon-Portage Electric Cooperative and the Clark Electric Cooperative, ensured a stable supply of electricity to rural residents. These cooperatives often provided additional services beyond electricity, such as satellite and internet access, contributing to the overall development and connectivity of rural areas.
Furthermore, electricity played a crucial role in improving communication and connectivity in rural Wisconsin. The availability of electric power made it possible for rural residents to access modern communication technologies, such as telephones and, later, computers and the internet. This helped bridge the gap between rural and urban communities, providing access to information, education, and social connections that were previously difficult to attain.
Overall, the introduction of electricity in rural Wisconsin transformed daily life, bringing new opportunities, conveniences, and amenities to residents. It improved agricultural practices, reduced manual labour, and provided access to modern technologies and infrastructure. Electricity played a pivotal role in bridging the urban-rural divide and contributed to the overall development and modernization of rural communities in Wisconsin.
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Frequently asked questions
Rural electrical cooperatives brought electricity to Wisconsin in the 1930s.
Power companies focused on cities as they were more profitable. Electricity was too expensive for most farmers to install and use.
The REA was established in 1934-1935 to help farmers meet the need for power. It provided low-interest loans to build power lines and educate consumers about electricity.
Within 15 years of the REA's establishment, 90% of American farms had electricity. Today, more than 520,000 people in Wisconsin are served by rural electric systems.
Electricity was primarily used to power machinery and equipment, such as water pumps and tools. Luxury items like refrigerators, radios, and electric stoves may not have been added to households for many years.
