What is a rural electric cooperative?

A rural electric cooperative is a consumer-owned business organized to bring electric service to rural people. Because each electric cooperative is owned by the people it serves, the co-op's consumers are often called members. Rural electric cooperatives are non-profit utilities. They return any monetary surpluses (money remaining after expenses are paid) to their members in the form of capital credits. These returns are also known as patronage refunds. Electric cooperatives provide electricity to virtually all areas within their service territories. This policy is known as area coverage.

In Pennsylvania, cooperatives also have a territorial protection law. This act, signed by Governor Milton Shapp in 1975, prevents other utilities from taking over co-op service territories.

A board of directors governs each rural electric cooperative. These directors are members of the cooperative. They are elected by their fellow members. Each consumer has one vote, regardless of how many accounts he may have or how much electricity he uses. The board of directors develops policies and passes budgets for the cooperative. The chief executive officer of the cooperative, known as the president, is elected by the board of directors. Tri-County's board president is Gerald Kite. The general manager runs the day-to-day business operations of the cooperative. He is hired by the board of directors. Tri-County's general manager is Robert Toombs.

How did the rural electric movement begin?

President Franklin D. Roosevelt is credited with founding the rural electric movement. He created the Rural Electrification Administration (REA) by signing an executive order in 1935. He appointed Morris L. Cooke as the first REA administrator.

Rural electric cooperatives began springing up across the nation in the late 1930s. Congress made this possible when it passed the Rural Electrification Act in 1936. This bill authorized REA to make loans for the construction of rural electric systems. An amendment was added in to the act in 1949 so that REA could also lend money to telephone cooperatives.

What is the difference between REA and RUS?

The Rural Electrification Administration, also known as REA, was an agency within the U.S. Department of Agriculture. It lent money to electric and telephone cooperatives. It also offered engineering and accounting assistance. In 1994, REA ceased to exist. In its place, Congress established the Rural Utilities Service (RUS). It assigned most of REA's former duties, such as the rural electric loan fund, to RUS. Congress also gave RUS some new responsibilities. Today, RUS assists cooperatives with the establishment of rural water and sewer systems and other utility-related services.

What is the National Rural Utilities Cooperative Finance Corporation (CFC)?

The National Rural Utilities Cooperative Finance Corporation (CFC) lends money to rural electric and telephone cooperatives. It was established in 1969 out of a need for additional funding for the rural electrification program. Organized as a cooperative, CFC is owned by the cooperatives that borrow money from it. CFC is not owned by the government. It makes loans to both electric and telephone cooperatives. Some cooperatives borrow money from CFC and REA. Both of these lending institutions have headquarters in the Washington, D.C., area.

What are distribution cooperatives?

A distribution cooperative distributes electricity in low-voltage form to consumers and businesses. Tri-County is a distribution cooperative.

What is a generation and transmission cooperative (G&T)?

G&Ts, also known as wholesale power suppliers, are cooperatively owned by a group of distribution cooperatives. G&Ts generate power and/or purchase power from other utilities for resale to their member distribution cooperatives. Allegheny Electric Cooperative is the G&T for Pennsylvania and New Jersey's 14 rural electric cooperatives. Allegheny's president, Bill Mowatt, works out of the G&T's headquarters in Harrisburg, Pa.

Allegheny operates Raystown Hydroelectric Project, a small hydroelectric project. Built by in 1986, the 2-megawatt power plant is located on Lake Raystown, near Huntingdon, Pa. Allegheny also owns 10 percent of Susquehanna Steam Electric Station. Pennsylvania Power & Light owns the other 90 percent of this nuclear power plant located in Berwick, Pa.

What is the Pennsylvania Rural Electric Association?

The Pennsylvania Rural Electric Association, often referred to as PREA, is the statewide service organization for the 14 electric cooperatives in Pennsylvania and New Jersey. PREA headquarters are based in Harrisburg, Pa. Frank Betley serves as president of PREA, as well as Allegheny Electric Cooperative.

PREA provides a variety of services to its member cooperatives. These services include safety education, public relations, legislative assistance and job training. It also publishes Penn Lines, a monthly newsmagazine for co-op members.

What is NRECA?

NRECA stands for the National Rural Electric Cooperative Association, which is based out of Arlington, Va. As the national service organization for America's electric cooperatives, one of NRECA's primary functions is to make rural electric issues known to the U.S. Congress.

NRECA is a non-profit organization. It is owned and controlled by the co-ops that comprise its membership. While NRECA works closely with RUS, it does not receive government funding. Willie Wiredhand is NRECA's mascot. This copyrighted cartoon figure is used to personify the rural electrification program.

What is the Rural Electric Youth Tour?

The Rural Electric Youth Tour is an educational program held each June in Washington, D.C. It draws more than 1,000 high school students from rural America. Youth Tour teaches them about electric co-ops and the U.S. government.

The program was originally inspired by a speech given by then-Senator Lyndon Johnson at the 1957 NRECA annual meeting. He urged co-ops to send their young people to that nation's capital to learn more about our government. NRECA has coordinated the program on a national level since 1964.

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