Rural Electrification Act


The Rural Electrification Act of 1936, enacted on May 20, 1936, provided federal loans for the installation of electrical distribution systems to serve isolated rural areas of the United States.
The funding was channeled through cooperative electric power companies, most of which still exist today. These member-owned cooperatives purchased power on a wholesale basis and distributed it using their own network of transmission and distribution lines. The Rural Electrification Act was also an attempt made by FDR's New Deal to deal with high unemployment.

History

On May 11, 1935, President Franklin Delano Roosevelt issued, which created the Rural Electrification Administration. In 1936, the Congress endorsed Roosevelt's action by passing the Rural Electrification Act. At the time the Rural Electrification Act was passed, electricity was commonplace in cities but largely unavailable in farms, ranches, and other rural places. Representative John E. Rankin and Senator George William Norris were supporters of the Rural Electrification Act, which was signed into law by Roosevelt on May 20, 1936.
Speaker of the House Sam Rayburn was a major proponent of the REA, which he helped pass in 1936 as Chairman of the House Interstate and Foreign Commerce Committee. He proudly stated in 1959 that ninety percent of farm homes in the U.S. were electrified, compared to three percent in the early 1930s.

Technical issues

In the 1930s, the provision of power to remote areas was not thought to be economically feasible. A 2300 volt distribution system was then used in cities. This relatively low voltage could be carried only about 4 miles before the voltage drop became unacceptable.
REA cooperatives used a 7200 volt distribution network, which could support much longer runs. Despite requiring more expensive transformers at each home, the overall system cost was manageable.

Wiring homes and farms

REA crews traveled through the American countryside, bringing teams of electricians along with them. The electricians added wiring to houses and barns to utilize the newly available power provided by the line crews. A standard REA installation in a house consisted of:
  1. A 60 amp range circuit
  2. A 20 amp kitchen circuit
  3. Two or three 15 amp lighting circuits
A ceiling-mounted light fixture was installed in each room, usually controlled by a single switch mounted near a door. At most, one outlet was installed per room, since plug-connected appliances were expensive and uncommon. Wiring was performed using type NM, insulated with asbestos-reinforced rubber covered with jute and tar.
Many of these original installations still exist today, though most have been augmented to support a greater number and variety of appliances.

Later amendments

Some amendments to the Rural Electrification Act include:
Date of EnactmentPublic Law NumberU.S. Statute CitationU.S. Legislative BillU.S. Presidential Administration
September 21, 1944P.L. 78-425Franklin D. Roosevelt
October 28, 1949P.L. 81-423Harry S. Truman
June 15, 1955P.L. 84-70Dwight D. Eisenhower
October 23, 1962P.L. 87-862John F. Kennedy
May 7, 1971P.L. 92-12Richard M. Nixon
June 30, 1972P.L. 92-324Richard M. Nixon
May 11, 1973P.L. 93-32Richard M. Nixon
November 4, 1975P.L. 94-124Gerald R. Ford
October 20, 1976P.L. 94-570Gerald R. Ford
May 25, 1984P.L. 98-300Ronald W. Reagan
October 21, 1992P.L. 102-428George H.W. Bush
November 1, 1993P.L. 103-129William J. Clinton
December 17, 1993P.L. 103-201William J. Clinton
June 18, 2008P.L. 110-246George W. Bush
February 7, 2014P.L. 113-79Barack H. Obama II